- It is rarely that you get to see the bluest of blue chips like HDFC, HDFC Bank, Bajaj Finance among other losing nearly 5% in a single day. From a macro perspective, it is never a positive sign when the drivers start losing value.
- Markets will be wary about the rate cut enthusiasm after the RBI governor warned that any rate decision will be purely driven only by macro data flows. This had actually dampened the spirits in the stock markets on Monday.
- FIIs were net sellers to the tune of Rs.1917 crore while DFIs bought Rs.1830 crore on Monday. FIIs have now sold over Rs.9000 crore worth of equities since the Union Budget was announced and the FPI tax was imposed.
- On a day when the Chinese version of the NASDAQ made its debut, the US based NASDAQ also saw some aggressive buying. Markets overall have been flat to negative and the SGX Nifty was also trading in the green.
- Private Banks may be under pressure especially where we have seen a rise in spillages. We are negative on RBL Bank over larger spillage issues and suggest selling the stock around Rs.500 for lower targets of Rs.460.
- Smart traders can now look to sell Yes Bank around the Rs.90 levels with the latest flow on Rana Kapoor pledging a large chunk of shares with financers. Target price levels of RS.70 and Rs.60 on the lower side on the stock.
- Any bounce in Zee should be used to sell out of the stock. One can also look at selling the stock at around the 365/370 levels for first downside target of Rs.325 as the September deadline approaches with little progress made.
- A lot will predicate on richly valued private banks, which have now come under pressure in the markets. Keep an eye on these stocks.
