FAST MONEY: Vedanta, Union Bank among 10 intraday tips for today's trade

Buy ACC with a target of Rs 1520. Image source: Reuters

The benchmark indices are expected to open on a flat to negative note on Tuesday after rally in Asian markets stalled as Wall Street shares lost steam, while the dollar sagged on the back of declining US yields. At 8:30 am, SGX Nifty, Nifty futures being traded on Singapore Stock Exchange, was trading at 10,426, down 6 points or 0.06 per cent.

Back home, consumer price index (CPI) or retail inflation slipped to 4.44 per cent in the month of February 2018, from 5.05 per cent in January 2018, slightly in line with analysts expectations. However, the numbers were higher compared to 3.65 per cent in the corresponding month of the previous year.

Industrial output, meanwhile, expanded 7.5 per cent in January, up from 7.1 per cent in December. This is the third straight month that the index of industrial production (IIP) expanded by more than 7 per cent, suggesting economic activity is gaining as the effects of demonetisation and the goods and services tax (GST) fizzle out.

On Monday, investor wealth rose by Rs 1.78 lakh crore, helped by a smart rally in the stock market, where the benchmark Sensex spurted by 611 points -- its biggest single-day gain in two years. Led by the robust surge in stocks, the total market capitalisation of BSE-listed companies went up by Rs 1,78,393.67 crore to Rs 1,44,52,009 crore. The Sensex surged 610.80 points to end at 33,917.94, while Nifty quoted 10,421.40, up 194.55 points or 1.90 per cent at close.

Overseas, a mixed performance by US shares overnight cooled investor risk appetite in Asia. Investors were also focused on US inflation data due later in the day for clues on the pace of Federal Reserve interest rate rises this year. MSCI’s broadest index of Asia-Pacific shares outside Japan was little changed by mid-morning. Japan’s Nikkei shed 0.2 per cent, with shares in steelmakers and automakers still battered by concerns about US tariffs on imported steel and aluminium. Australian shares lost 0.7 per cent , while Shanghai dipped 0.1 per cent. South Korea’s KOSPI was effectively flat.

The S&P 500 and the Dow slipped on Monday as the US tariffs signed into law last week weighed on industrials, while gains in tech stocks boosted the Nasdaq to a new record high.

Here are the key trading ideas for Tuesday's trade:

1 - (SELL) UNION BANK

Target: Rs 89
Stoploss: Rs 94
CMP: Rs 91.25