What are some good trading ideas for Wednesday, 13 May 2020? Will the Modi stimulus impact the markets?

In fact, the Modi 2.0 stimulus will be the big story for 13 May. Markets are likely to be optimistic ahead of the announcement. However, borrowings could be pushed up further and that is a worry. Also the US markets were very weak on Tuesday.

· Economic stimulus means big positive for Larsen & Toubro. Traders must look to buy L&T at Rs.816 levels for upside targets of Rs.880 to ride the stimulus.

· Another stimulus candidate could be Mahindra & Mahindra as focus is on farm and rural incomes. Traders can buy M&M at Rs.395 for targets of Rs.450.

· ITC remains a concern as government could use it as a whipping boy for more revenues. Look to sell ITC at Rs.166 levels for lower targets of Rs.140 in the current month.

The big story of Wednesday will be the fiscal stimulus of Rs.20 lakh crore. But global weakness could market markets cautious at higher levels.