InvestorQ : What are the major trading tips from your side for 03 August 2020? Do you see more correction from this level?
Dhwani Mehta made post

What are the major trading tips from your side for 03 August 2020? Do you see more correction from this level?

Answer
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diksha shah answered.
2 months ago


For the week, the big story will be the announcement of the monetary policy on 06 August and there are broad expectations of a 25-50 bps rate cut. Whether correction continues will largely depend on whether IT sector also participates in the downside. Here are the tips.

· The first target of Rs.625 on M&M has been achieved. It is time buy more at Rs.610 with target of Rs.700 to play the tractors segment on the back of rural income theme.

· Another way to play rural theme is to buy Rallis India at Rs. 285-290 for targets of Rs.350 on a surge in agrochemical companies due to normal monsoons and better cropping.

· Buy Deepak Fertilizers at Rs.160 for targets of Rs.200 in one month. Timely payment of subsidy dues has helped the cash flows of fertilizer companies substantially.

While rate cut will be expected, markets are also expecting clarity on the EMI moratorium issue, which expires on August 31.