Daily BriefsIndustrials

Daily Brief Industrials: S&P 500, Mahindra EPC Irrigation and more

In today’s briefing:

  • Bear Market Until Proven Otherwise; Upgrading Industrials to Overweight; Buys Within Industrials
  • Mahindra EPC – A Proxy Play on MIS Opportunity

Bear Market Until Proven Otherwise; Upgrading Industrials to Overweight; Buys Within Industrials

By Joe Jasper

  • In our Sept.27 Compass, with the S&P 500 down 11.5% during the prior two weeks, we discussed our belief that the market indexes could see a bounce/pause pause in selling.
  • The SPX and IWM have paused, and we cannot rule out a bear market rally if the 200-week MA (3590-3600) holds on the SPX, and if $162-163 holds on IWM.
  • Longer-Term, this is still a bear market until the S&P 500 and Russell 2000 can break above their respective 200-day MAs.

Mahindra EPC – A Proxy Play on MIS Opportunity

By Gauri Anand

  • Micro Irrigation firms > reeling under commodity stress > cut in Govt budgets > long wcap cycle
  • Long term outlook, however is robust > revival in spends likely
  • Negative sentiments > low earnings visibility > low valuation offers entry opportunity  

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