Market Outlook 01-March-2019

Global market & Events:

DOW: -69 (There wasn’t no specific conclusion between Trump and Kim)

SGX NIFTY: 10872 (-2). However NIFTY 50 closed at 10792

Dollar: 70.75 vs 71.24

Gold: $ 1314 per ounce

Crude: $ 66.54 per barrel

10 year US bond rate: 2.71 percent
10 year Indian Bond rate: 7.40 percent

VIX: 18.28

FII: +3210
DII: -5240`

Market View – remains to be volatile in range with the tension still persisting between India and Pakistan. Vix Conti yes to remain at elevated levels

Actionable – We continue with our Buy on Voltas and Havells for one to two month (now Add at lower levels). Also buy Axis bank, ICICI bank Infosys, JindalSteel.
Buy for Investment Ramco Cements at corrections.

Economy growth slowed down to 6.6% during last quarter which is Inline with market expectation. Slow down mainly because of government and house hold expenditures. There is de-acceleration in agricultural growth. Silver lining is that Pvt sector investment grew by 10%. Slowed down in the growth along with lower inflation, may leads to reducing interest rate by 50 bps in next policy meeting in April. Positive for Interest rate sensitive sectors.

Bank credit growth to industry, which had slowed sharply over the last few years, continued to rebound and hit a three-year high in January @5.5%.

Cement – Expecting capacity utilisation to improve going forward. Buy for Investment Ramco Cements.

Derivatives View – VIX Closed at 18.27 level. At the start of the new series Put writing is seen at 10300 then 10600 strike while Call writing is seen at 11000 then 10900 strike. Option band signifies a broader trading range between 10600 to 11000 zone.

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