FAST MONEY: Eicher Motors, Vadilal among seven trading ideas for today's trade
Fears of a full-blown trade war between the United States and China battered investor sentiment as investors fretted over the fate of global growth. At 8:20 am, SGX Nifty, Nifty futures being traded on Singapore Stock Exchange, was trading at 10,032, down 40 points or 0.40 per cent.
The benchmark indices are expected to open lower on Monday tracking negative trend in Asian markets as fears of a full-blown trade war between the United States and China battered investor sentiment as investors fretted over the fate of global growth. At 8:20 am, SGX Nifty, Nifty futures being traded on Singapore Stock Exchange, was trading at 10,032, down 40 points or 0.40 per cent.
US President Donald Trump signed a memorandum last week that could impose tariffs on up to $60 billion of imports from China, although the measures have a 30-day consultation period before they take effect.
Among Asian markets, Japan's Nikkei stumbled 0.9 per cent to a near six-month trough in early trade, due in part to worries over the stronger yen squeezing export earnings. Australian shares declined 0.5 per cent to their lowest since early October.
MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.1 per cent for their fourth consecutive day in the red. The index is headed for its first quarterly loss since late 2016 as the risk of faster US rate rises and the specter of a trade war spooked investors who had enjoyed a multi-year bull run.
On Friday, Wall Street tumbled with more than 1,000 points knocked off the Dow in two days as investors, increasingly nervous about a potential US trade war with China, shied away from risk ahead of the weekend and sought shelter from further losses. The Dow Jones Industrial Average fell 424.69 points, or 1.77 percent, to 23,533.2, the S&P 500 lost 55.43 points, or 2.10 percent, to 2,588.26 after hitting an intraday low that was barely above its 200-day moving average of 2585.22.
Over the last week, the BSE Sensex recorded a fall of 579.46 points, or 1.75 per cent. Nine of the 10 most valued companies together lost Rs 36,467.94 crore in market valuation last week, with SBI taking the steepest hit. HUL was the lone gainer among the top-10 firms. The market capitalisation (m-cap) of State Bank of India (SBI) tanked Rs 15,537.7 crore to Rs 2,02,507.98 crore.
Here are key trading ideas for today's trade:
1) TORRENT POWER
Target: Rs 1280
Stoploss: Rs 1240
CMP: Rs 1250.80
The stock is rallying for last two sessions
Reversal seen on short-term charts
2) INDIABULLS HOUSING
Target: Rs 1240
Stoploss: Rs 1190
CMP: Rs 1200
The stock takes support at 200-DEMA
The stock stayed above its 200-DMA during broader market fall
3) EICHER MOTORS
Target: Rs 28400
Stoploss: Rs 27600
CMP: Rs 27896
The stock is strong on weekly chart
The stock didn't fall as much as key indices did
Target: Rs 870
Stoploss: Rs 850
CMP: Rs 856
The stock sees strong recovery from lower levels
The stock recovered after 8-session long fall
5) BHUSHAN STEEL
Target: Rs 44
Stoploss: Rs 41
CMP: Rs 41.45
The stock reamined strong amid steep fall in market in previous session
Tata Steel to soon buy Bhushan Steel
Target: Rs 117
Stoploss: Rs 110
The govt focusing on reviving sick PSUs
A parliamentary panel put in recommendations to govt
restructuring and modernisation proposals have been put forth
Target: Rs 20.5
Stoploss: Rs 18.9
(Stocks mentioned here are for informational purpose. Consult your financial advisor before investing.)