D-Street awaiting cues from RBI policy, OPEC meet and state elections’ results

Investors are taking a risk-averse approach due to the corporate governance issue being faced in the banking & NBFC sector

Equity markets are likely to remain range bound before the upcoming events in the coming few weeks, as the traders/investors are waiting for the outcome of upcoming important events such as RBI monetary policy meet, OPEC meeting during the next week and the state election results in the week after.

The markets have got some respite after RBI’s steps to inject liquidity through open market operations. This has lead to the 10-year bond yields fall to ~7.65 percent from the highs of ~8.20 percent. However, the investors are taking a risk-averse approach due to the corporate governance issue being faced in the banking and NBFC sector.

This week the auto companies will be releasing sales data for the month of November – investors are awaiting these numbers as these will include festive sales data.

Share Market Tips and recommendations Follow Market Captains .

Some of the stocks that we like are:

Aditya Birla Fashion & Retail | Rating: Buy | Target: Rs 239

The company posted a sharp H1FY19 turnaround with profit of Rs. 48.3 crore versus Rs. 30.3 crore net loss a year ago in H1FY18 due to management initiatives across its various divisions in.

L&T Technology Services | Rating: Buy | Target: Rs 1,940

The company provides design and development solutions to clients across the entire value chain of product development.

Aarti Industries | Rating: Buy | Target: Rs 1,600

One of the global leaders in benzene-based chemistry through its process chemistry and scale-up engineering competencies, Aarti Industries’ revenue and profit are expected to grow at 20 percent and 22 percent CAGRs over FY18-21, driven by scale-ups in its specialty chemical and pharmaceutical businesses and the new toluene capacity.

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Keep 5-yr investment horizon for Long Term Equity Fund

Though the fund has done well over past five years, the investors must be prepared to tolerate short-term under performance in case there is a sudden rally that overlooks fundamentals . Investment strategy The scheme has invested in a concentrated portfolio of around 25 stocks. The stocks are picked up on a bottom-up basis. The fund manager identifies investment opportunities that would deliver over a five-year time frame. “We don’t put much emphasis on the macro environment and the associated factors since they are not predictable and not within anyone’s control. Should you invest now? The scheme’s portfolio has cut its net exposure to Indian stocks over past two years. Compared to 62 percent in September 2016, it came down to 55 percent in September 2017 and to 45 percent now, in line with rising valuations of quality companies. High cash levels and exposure to overseas stocks have helped the fund to weather recent sharp correction in Indian stocks....

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Wall Street drops, S&P 500 confirms correction

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