Nifty and Sensex did disappoint on 11 May, losing all their early gains. There were concerns that growth may falter as lockdowns get extended till the end of May. Keep an eye on the bond yields which can shoot up further this week and put pressure on equity markets.

· The spike in bond yields is negative for banks and AMCs. Trade Axis Bank and HDFC AMC for 15% downsides from current levels.

· Tata Motors looks vulnerable after the recent bounce. Global auto growth is expected to be negative and is a double whammy for TAMO. Sell at Rs.85 for targets of Rs.70.

· Buy into Hero Moto if you can wait for a month at around Rs.2020 for targets of Rs.2200. Valuations are 10X P/E are extremely attractive.

The market could be more sector-divergent. Banks, NBFCs and autos could come under pressure. Pharma and IT are likely to be defensive.