- Yesterday our report was titled “Don’t be misled by the Nifty bounce”. We have reasons to believe that Thursday may also give a mixed trend due to weekly F&O expiry, but trading next will be largely influenced by the exit polls.
- The delay in the monsoons now looks like a done deal. With the IMD and the SKYMET agreeing upon a 1-week delay in the monsoon, rural demand could be a major challenge for the next government.
- FIIs were net sellers to the tune of Rs. (-1142) crore while DFIs bought Rs.672 crore on Wednesday. FII selling in May has gotten crossed $1.20 billion in the equity markets and one can expect more volatility ahead of election results.
- Markets across the US and Europe remained buoyant on Wednesday on hopes that Trump and Xi should be able to pull off a deal in the G-20 Summit. Geopolitical risk remains a big concern in the Middle East. SGX Nifty is flat.
- We reiterate our negative view on most of the vulnerable companies ahead of counting for elections. We suggest short positions in Zee Entertainment, IndusInd Bank, Yes Bank, Dewan Housing and on Maruti.
- Tata Chemicals is quoting close to it is yearly low and should benefit from the proposed sale of its consumer division to TGBL. It should help them to monetize assets and also to focus more on soda ash. Target Rs.650-660 on the stock.
- Eicher may be a high price stock but keep accumulating the stock between 19K and 20K for targets of Rs.24 K in one quarter. The stock has overreacted on valuation worries and that is something that should get rectified.
- While trade war cues will be the key, Indian markets will see heightened volatility on Thursday due to the weekly F&O expiry.
