What are the major trading ideas and tips for 04 August 2020? Can I buy after the sharp fall in the Nifty?
Answer
Answer
On Monday, Nifty ended well below the 10,900 mark as Sensex lost 600 points as most heavyweights led by Reliance and HDFC Bank saw deep cuts over rising COVID numbers. It is best to wait for the policy announcement before buying into Nifty stocks. Here are the tips.
· Buy Wockhardt at Rs.300 for target of Rs.350 as the latest mega big order from the UK for the vaccine doses is for over 400 million doses and should be positive.
· Buy HDFC Bank around Rs.1000 for targets of Rs.1150 as the stock is now available at a valuation of 19X, well below its historic valuations commanded. A pure value play.
· I reiterate my call to buy Deepak Fertilizers at Rs.160 for targets of Rs.200 in one month. With promise of good monsoons and timely payment of subsidy it should be a hit.
Global markets were positive on Monday and that should give a strong start. However, monetary cues will be crucial for markets.