That seems to be the important question settled by the markets at 6200 levels as they now plug out of trades that may not happen and get a chance to incentivize good results by penalizing worse performances in erstwhile favored stocks including defensives. Thus capex companies like L&T and BHEL are out of favor with BHEL leading declines as punters drop the hot rod for the new variety available. Globally Consumer discretionary have had an exceptional year so more QSRs and ITC will be available for the switch as the Indian markets complete a small measure of transformation with new gen IPOs.
Exide similarly will be penalized heavily for a recidivist score, ike other traditional family managed Indian companies including Asian Paints. The straddle ranges moved out but have come inside 6200 again and the markets will lose steam till 6100 maybe as confusion reigns in research and trade between how much of a urban winner like Bajaj Auto can score int he same trend when Heromoto has come out with a pre festive statement in its results. However good Heromoto may be, an exit from Bajaj Auto at this point is likely to be a missed opportunity as also probably the chance to catch M&M and M&M Financial as they make it to FII portfolios and ramp up scale of performance. The CLSA short on Bajaj Auto however seems to be a pime example of research gone wrong and could be ignored by markets
Pharma and IT are not out of favor and banks not leading the rally post Capital infusion also is a done deal but banks will pull up more than most others in the Diwali season and before the next state elections are completed. ACC and Ambuja similarly posted bad results but are probably at the end of 13 consecutive not so good quarters ( Except for Ambuja’s strategy specific wins) Energy is as of now a big disappointment in the last 20 trading days and again may see some speculative interest as Oil at its lowest for WTI seems to get stuck at 108 levels at least for Brent and other Middle East varieties
YES, IDFC and ICICI Bank are back in the running and are definitely your best positional longs at this juncture for the entire shorter two week or longer 13-26 week horizons apart from the usual additions to investment portfolios
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The India Investment Post (earlier india.advantages.us) 