The verity of the split between reason and markets is still maintained as a matter of skilled rigor in the Indian markets as the markets choose to treat the impending dull time with the usual definitive vertical fall of another 100 points on the Nifty making it two within two weeks and keeping VIX moves and hedges/trades mostly irrelevant in an otherwise very large Indian Market with daily volumes. As a side effect the collase is probably cleared out at 5800 levels itself though one has to research the phenomena and buying has returned in cash equities instead of shorts , even including covering up of shorts ( Angel Broking , Kulkarni brought in the decision points trailin the morning line up) as markets find buying opportunities and sectorally IT scrips take up the slack interest of shorts while defensives like Idea and Havells apart, the broader markt including the banks are already moving back u p which has already ensnared traditional analysts on the networks to a relief rally view which will not be borne out as markets treat the 11950 and 12040 levels on the bank nifty as mostly the same and may not treat it as a technical breach
However, I am still buying only ICICI Bank, YES and the NBFC candidates in banks and IDFC in infracos and do not expect markets to be positive on the budget
Selling IT would be an important consistent trade in this market for those unwilling to trade long. Sorry, Ashwini
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