- The big Yes Bank shocker will weigh on most of the heavy weights during the current week too. Markets will be uncertain till there is clarity on the road ahead for Yes Bank. Expect selling on every bounce in the market.
- With INR getting close to 74/$, the FPI flows are likely to come under further pressure unless there is a signal that the RBI will use its currency chest to support the rupee. This may continue to be positive for IT stocks this week.
- FPIs were net sellers to the tune of Rs.3595 crore while DFIs bought Rs.2544 crore on Friday. FIIs have been consistently selling in the last 3 weeks since the pandemic became international. Weak rupee is adding to the risk-off sentiments.
- It was a virtual carnage on Friday as the Dow and NASDAQ lost close to 2% while the European markets lost over 4%. Most of Asia was down over 2% on Friday and the SGX Nifty is starting off nearly 100 points lower on Monday.
- Our target on IndusInd Bank was achieved on the same day but we continue to stay short on the stock. We now see the stock decisively breaching the 1000 mark and gravitating toward the 900 mark. Trade accordingly on the short side.
- It is time to use rises in the AMC companies like Nippon and HDFC MF as the AT1 bonds issue becomes larger with the passage of time. AMC companies have rallied sharply and it is time to start selling out of these counters. Trade accordingly.
- There could be a real problem for ONGC. Even at Rs.88 the stock looks heavily priced as the weakness in crude will hit them hard. One can sell ONGC at 88-90 levels for downside targets of Rs.60 in the next one quarter.
- While markets may be close to a technical bottom, individual value destruction could still be fairly huge. Trade cautiously.
