- There was some worried selling in the last 2 days after the bond yields started shooting up across the globe. The higher margins imposed by the exchange was also responsible for the sell-off in the mid cap stocks.
- We believe that the correction closer to the 11,000 levels offers a good opportunity to get in and buy quality stocks at lower prices. The Nifty still appears poised to get higher to the 11,500 levels from here on.
- FIIs were net sellers to the tune of Rs.(-106) crores while DFIs sold Rs.(-282) crore on Tuesday. FPIs have been aggressive buyers in Jan and the weak selling volumes means that this is more of futures unwinding and hedging of longs.
- There was a virtual sell off across markets on Tuesday as rising bond yields remained the big concern. We see the Nifty taking support at 11,000 levels and the SGX Nifty is still quoting well above those levels. It is time to buy!
- We had recommended a sell on Bharti with a target of Rs.400. The stock has corrected to Rs.441 levels and we still a short selling opportunity on Bharti as competition intensifies in the telecom sector. Idea could also be a short.
- SBI Life is a stock we have been consistently positive on and with its stellar results the level of 660-665 may be a good level to accumulate the stock. Don’t expect fireworks but SBI Life could be the insurer to outperform the pack.
- IOCL posted stellar results and the big story was the improvement in GRMs to $12.36/bbl. Despite worries on downstream subsidies coming back. IOCL appears to be the pick of the lot and could still have nearly 25% upsides from here.
- We expect the market to stabilize around the 11,000 levels and investors need to get aggressive and start buying at these levels.
