InvestorQ : Can you tell me some good stock trading ideas for 04 May 2020 in stocks? How do you see the market for the day?
Mary Joseph made post

Can you tell me some good stock trading ideas for 04 May 2020 in stocks? How do you see the market for the day?

Answer
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sara Kunju answered.
5 months ago


Nifty could start gap-down on 04 May as the SGX Nifty had corrected 6% on Friday when Indian markets were shut. In addition, the US has threatened to again impose fresh tariffs on China goods so we could be back to square one in terms of global economy.

· You need to be specifically cautious on Indian banks with asset quality issues. Traders can use bounces on Monday to sell into banking stocks like ICICI Bank and Axis Bank. They will make good selling candidates for 10-15% downsides.

· Another stock that could get hit by the China problems could be Tata Motors since JLR largely relies on China to drive incremental growth. Tata Motors can also be sold around 95-100 for lower targets of Rs.80. Keep strict stop losses in trade.

Currently, the US is looking to put the blame of the pandemic on China and that is not good news for markets. Nifty could face pressure after the sharp rally.