India Morning Report: 7000 it is, as markets reopen before the weekend

Yes, markets were indeed closed again yesterday (AND IT WAS NOT MY TRAVEL SCHEDULE THIS TIME) even as they await permissions from SBI for extended trading hours on counting day for the new regime. 68-00 puts have become easy to sell for starters as selling puts remains the best strategy amidst the eternal wait for investors to exit on profit taking and most action is limited to derivatives and margin trading business this month For all the talk of the slowdown slowing down, ACC produced another 5% contraction in sales according to the Cement analyst on call at ETNOW with a 6.48 MT pick up in the quarter coming on the back of a 10% hike in Opex.

Cement of course is a dull segment we usually avoid talking abou tas infra spending refuses to come back to India’s towns and budding megapolis’ HDFC Bank in the meantime is still trying ( unsuccessfully) to get the HDFC stake recognised as FDI as it has been deemed foreign, the piquant situation fully showing up the global faith in bureaucracy ‘to muck it up for everyone’.

Maruti’s expected quarterly sales troll the ticker tape ahead of the Friday open. Maruti reports INR 124 Bln in Sales as it fell a notch to #2 in Car exports with Nissan stepping up behind the 233k strong Hyundai export number till March 2014

By all signs it will likely be a dull day again, another 20 points up on the Nifty at open probably defining the closing mark as well

M&M is higher on better results, but the biggest winner remains YES Bank in this round as ICICI Bank gets back into gear over the 1300 mark. SIB apparently reported lower profits

Cairn is still struggling with resetting expectations in the Mangala fields, two years after coming under new management showing up their inanely missing the mark in valuing a string of mining and minerals acquisitions

Long Straddles are likely still to cost a penny more in transaction costs making the individual stock options strategies in such as L&T (TV18/Another Amit) unlikely. Sun Pharma will probably not dip below 90% of their current 627 price at any stagein the future. The same holds for IDFC while a short pair may be formed with Sun for Dr Reddy labs unless there is any expected news flow int he stock at 2575 levels DRL being extremely overpriced even for a Pharma stock

Biocon ”s loss of profit traction was apparently along expected lines as it makes a big recovery in morning trades as IT and Pharma will likley make a fresh baseline for the market post the new government and before details of governance take over the markets daily ins and outs for May and June

No one’s going away in May but the Met department think the rains might indeed go away and it well pays to be cautious

 

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