Market Outlook 05-March-2019

Global market & Events:

DOW: -206

SGX NIFTY: 10829 (-18). However NIFTY 50 closed at 10863.

Dollar: 70.91

Gold: $ 1287 per ounce

Crude: $ 65.45 per barrel

10 year US bond rate: 2.72 percent
10 year Indian Bond rate: 7.37 percent

VIX: 16.27

FII: +198
DII: +117

Market View – Market to open down due to global markets however it will remain in broader trading range of 10600- 10950.

Actionable – Buy Havells, Voltas, Ramco Cement at Correction. Buy Indusind Bank for Investment.

Update –

US president intends to terminate India and turkey as the GSP beneficiary. Trump stated that he wants to terminate preferential trade status for India. Negative for Indian Export Oriented Companies.

Indusind Bank (Value Buy)- Credit cost expected to come down from FY20 onwards. ILFS provisions (holding company) expected to be completed by 4th Quarter 2019. Strong loan growth, good liability Franchisee and Fees income to asset ratio is highest in the banking sector. Post-merger with Bharat finance, customer base will increase by 50% and NIM will improve. Quoting at attractive valuations. Buy for Investment.

Auto Monthly Sales Numbers – Eicher Motor Numbers big disappointment. Bajaj Auto slightly lower than expectation. Hero, Maruti, Ashok Leyland, TVS Motor In line with market expectation.

Derivative View – VIX fell down by 9.86% at 16.47 level. Call writing is seen at 11000 then 11400 strike while Put writing is seen at 10900 then 10800 strike. Option band signifies a trading range in between 10800 to 11000 zone.

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