Winning Strokes

The Sensex is trading at 56,983.83 down 495.61 points (-0.88%), while the Nifty is seen at 17,014.75 down 129.85 points (-0.78%). The Nifty is likely to get strong supports around 16700/16900 ranges, hence is not likely to break in this corrective phase.

Meanwhile, the yields on U.S. government bonds fell sharply to begin the week on Monday, as global equities nosedived, but quickly recovered.

Investors are anticipating the Fed policymakers' two-day meeting, which begins on Tuesday and concludes on Wednesday. This meeting is widely expected to lay the groundwork for a shift away from easy money stance, this year, without taking any policy action.

The rising global tensions and increased volatility in domestic and international stock markets are likely to continue to anchor the Bond yields lower.

In another significant developments,  the economic reports released on Monday, showed that the U.S. economy slowed in January as the  pandemic's (COVID-19) Omicron wave exacerbated supply delays and labour shortages. The flash purchasing managers index for manufacturing fell to 55.0, a 15-month low, while the gauge for the services sector fell to 50.9, an 18-month low, according to IHS Markit. This condition further attests to the fact that the Fed in all likelihood, is not expected to hike the interest rate too early. 

Incidentally in Asia, benchmark Chinese government bond yields fell through a key level for the first time in nearly 20 months on Monday, following the central bank's latest rate cut and as expectations grow for further easing to stabilise the slowing economy.

For the first time since May 28, 2020, China's 10-year yield fell below 2.70% falling 2 basis points (bps) in early trade to 2.685% before retracing. It was last at 2.720%.

Hence, we have two contrasting sceneries from two of the large economics of the world -- and it is no longer a one - way street, as far as the interest rates are concerned.

We are therefore, perhaps, at the last leg of market dip, triggered by various external parameters.

I feel the markets should stage a comeback, later in the day. Hence, this kind of market correction offer opportunities to enter good stocks at reasonable valuations.

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#Keep adding A2Z Infra Engineering Ltd (Rs.12.05) on declines. Its venture related to E - cycle and RDF Technology, should see the stock cross Rs.50/70 in style. Photo: A2Z Infra Engineering Ltd's E - cycle, which is generating good business for the company.

#Add the shares of Shriram EPC Ltd (Rs.8.95) on declines. The Rs.700 crore fund infusion, could make it one of biggest multibaggers in the EPC space. Moreover, it has around 49% holding in Orient Green Power Ltd. 

#Buy the shares of India's largest Helicopter player, Global Vectra Helicorp Ltd (Rs.55.25). 

It is into essential services too (Ferrying passenger to offshore drilling rigs, etc), Religious tourism, simple tourism, film shooting, etc and hence its activities should not be confused with a normal airlines company getting affected by Covid - 19 pandemic (though some effects will be there...).

#The shares of Orient Green Power Ltd (Rs.19.70) could correct upto Rs.17/13, where accumulation could be done. This is a Shriram group company, but has debts on its books.

#Buy the shares of BF Utilities Ltd near the CMP of Rs.385.55, for short term targets of Rs.442/472. SL: Rs.367.

#Keep holding the shares of my strongly recommended Coffee Day Enterprises Ltd (Rs.69.20), with a SL at Rs.66. If you remember, this was recommended around Rs.29/31, in this blog, few months back.

#Buy the shares of Union Bank Ltd near the CMP of Rs.42.50, for short term targets of Rs.61/66. SL: Rs.36.

#Buy the shares of Mukhesh Ambani controller Reliance Industries Ltd near the CMP of a Rs.2330.45, especially when the crude oil is Boling in international markets, for short term targets of Rs.2700/2800. SL: Rs.2170.