InvestorQ : Give me some trading calls and ideas for 07 May 2020? Will the Nifty correct after the sharp rise on Wednesday?
Dilmini Mercia made post

Give me some trading calls and ideas for 07 May 2020? Will the Nifty correct after the sharp rise on Wednesday?

Answer
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diksha shah answered.
4 months ago


Macros have been very weak for Indian economy with PMI Manufacturing at just 27 and the PMI Services at a global low of just 5.40. That is economy at standstill. Global cues are also negative on Thursday on pandemic fears and economic contraction. Here is what to trade.

· Use bounce in banking shares to sell out via short futures or even via put options. Remain cautious on banks like Axis Bank, ICICI Bank and IndusInd.

· Trade for further downside pressure on ITC. There could likely be a steeper tax on cigarettes and also the overhang of SUUTI shares selling. Target Rs.140 on ITC.

· For investment purposes, you can bet on Adani Green at around Rs.210 for targets of Rs.250. It is likely to benefit the most from the changing economics of fossil fuels.

Any bounce in this market will be hard to sustain when the macro picture is still bleak. Also the extended lockdown is raising growth concerns.