Morning Trading Strategies – India July 27, 2012

Again to make things easy for you to follow, we’d say TV18 and SS are bang on target saying the market is directionless after the 100 point jump, and having already bneaten a few more bankruptcies last yesterday, the markets may be feeling more adventurous about testing marks entering buying right now. Not very confidence engendering, thusly, becomes the ay to explain a quick rally in turn which destroys fiurther rally but still India remains with the other BRICs most undervalued nations and ne liquidity is not very far away if tehe Euro is indeed to be saved. some might think INR53000 crs from FIIs is about all we will get but Fund inflos can be mean to calculators when they start pouring despite interest in EM bonds which do not have enough floating around anyway and allocation measures would still cap any new fund sizes esp after infra funds have failed to take off in investor perception.

Not many are left without doubt that 15 year projects will indeed pay after 15 years but that also does not hide every one in to projects which are operating much below traffic and revenue estimates for their initial years. So we know what has to be done and that is in current and future project reports in this sector. Similarily having the agenda in other sectors  also means that the traders should twiddle thumbs only. For myself, i am going to be staying away till I recover my base capital from this portfolio again Trading wise, anyone not buying banks right now would not be able to see the woods for the trees and anyone ithout infra and consumption and healthcare investments will have to be very careful about where he wakes up , be it thru Mutual Funds or Hedge funds or private equity. 

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