A brighter future, shining potbellies 🙂 and a higher index
The markets are a little tired and some have thunk it to be the top , shorted it wrong and not made safe but probably have some losing money available to them from yesterday’s and the last week’s runs. Traders are a sharper lot though and they don’ tlike it when the markets are in control. in india that translates into funny arbitrage and leaves youa t risk for not so accurate traading calls in the middle of an undecided market. The answer is not a lower valuation and the bears won’t learn that till they are queezed hard after a bad run for aalmost two uyears now for the bulls.
But here is an example of things that do not work. Shorting Reliance at 860. jubilant Foods , shorting it below 1200, Today’s calls include the first already and reforms are not going to be executed byt he markets so those using fundamental ploys to get a trade in lose. like the ones who thought Bharti Airtel is finished and it did come back now at 350 and going higher. There are more but the tenets are simple stay in FAO if you cannot get the scripwise moves but only the indices and stay out of scripwise selections unless they are buys. Shorts to replace the high tide in Axis Bank are i still think unlikely. Pharma is not going to correct from here but the move up., I am not so sure and there if anyone actually can select a scrip from the dozen mid cap pack and the three big time midcaps like Sun Pharma and Dr Reddy who could never scale up to large blue chips in India’s megalithic domestic pharmacoepia of drug markets, or if one can try it on Bajaj Auto and Bajaj Finserv. I thin k all of these are fundamentally heading north including Stride Arcolabs which may not get scythed in this bid in 2013 as money can alwaays add on to the India story inthis comeback year, a bottom easily formed and seen to have been formed unlike in China where the money is stuck for an entirely different dragged out bottom of the cycle and is still soaking in more because of the fundamentals of that country and unfortuantely because we know thos eills to be of a permanent nature well inscribed.