India Morning Report: Wish you a Happy Festive Season and a prosperous New Year

The diwali diyas at Diwali Celebrations at Ban...

The diwali diyas at Diwali Celebrations at Bangalore 2010 (Photo credit: Wikipedia)

That of course is Diwali day trading, a welcome to Hindu Calendar year 2070 ( there are many variations of this year 2070 too, and we follow the ‘Vikram’ calendar ‘officially’)

Goldman Sachs has upgraded the season’s new watermark to be 6900. Others have posited a 7500 mark to aim for till next October and the markets are a little broken, down 30 points at open in sync with the rest of Asia and most market operators simply look at the number and believe it is more about building that appetite for new levels and with buyers primed by the good analysis floating all around, and retail investors held away by “the urge to splurge” the trends are rock solid this instance. ITC is still funding the new entries and new shorts have been segmented in JP Associates, ITC and IT in the F&O market

After October’s record inflows, the November marks’ buoyancy is likely to create a currency ripple and strengthen the Rupee to 60 levels and probably bring Fixed Income yields down by 20-30 basis points through this month and by the time equity series expires on November 28. The day is off with short calls and if the trend is indeed sustained above 6200 levels, the first target will be the long-awaited 6350 rush. domestic institutions will be staying out in this rally and unless you have an appetite for longer term investing – YES, IDFC, ICICI (down 30 today), ITC, Bharti – you should also watch from the sidelines and trade in derivatives along strict lines for the big bang when you read the risk.

The institutional hedges ave to move from shorting the index this instance though some of the longer passive fund s would still short  at the OTM 6750 levels. A 78 Rs move in Reliance has made it the largest contributor on the Nifty and as was its wnt in the 90s, its stemming the correction singly. PSU bank trades were no trecommended here, esp in Union Bank of India and Indian Bank ( a very counter intuitive “bottom of the rung” move by bigger tier 2 operators /proprietary desks at indian brokerages)

The Sell on HCL Tech (Prakash Gaba) is an instant success recipe and remember to book your profits. The shorts in Powergrid and any dips in REC are good opportunities to buy . In fact REC is good at current levels even s press notes of further clearing of roadblocks in projects worth INR 4 Tln are not worth the sound bite, but the infracos have the rights to an ultra explosive take off, IDFC already up 12-15% in the crossover. Real estate will not be too hot despite the great results as the pressures remain, gold demand down 40% after a non-existent takeoff in coins and other investment bullion trades. Metals rally is on, though with the miners (related) NMDC and Coal starting back in favor. Gains in HUL will be along calculated returns for high yielding investment strategies. MidCaps are going to have to wait

 

Advertisements

9 thoughts on “India Morning Report: Wish you a Happy Festive Season and a prosperous New Year

  1. Pingback: India Morning Report: A post festival dawn, markets churning sector and memes | The India Investment Post (earlier india.advantages.us)

  2. Pingback: India Morning Report: 6220, then, true bottom, market move up please. | The India Investment Post (earlier india.advantages.us)

  3. Pingback: India Morning Report: Pass around the peanuts :: Losing 6200 now(not really), I am sinking, No EMs aren’t a great buy or great “SELL” either | The India Investment Post (earlier india.advantages.us)

  4. Pingback: India Morning Report: Everything is alive and some more are back in play | The India Investment Post (earlier india.advantages.us)

  5. Pingback: India Morning Report: A sudden rush for crossing 6350, nipped again | The India Investment Post (earlier india.advantages.us)

  6. Pingback: India Morning Report Lets get some money from call writing quickies | The India Investment Post (earlier india.advantages.us)

  7. Pingback: India Morning Report: Powergrid 75 Lac shares on offer, LIC and IDFC better picks | The India Investment Post (earlier india.advantages.us)

  8. Pingback: India Morning Report: Will India follow the midweek ‘Global Gotchas’ now? | The India Investment Post (earlier india.advantages.us)

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s