India Morning Report: Expiry Week slow and tortuous as expected

At last, something has replaced the slow and tortuous progress of the Monsoon on India branding efforts and news flow. On a more serious note however, you must have noticed i have missed a date here on Tuesday. That is likely to continue with my present schedule and with markets tending to remain flat now with active OI adds near expiry on the short side, it is definitely not a morning you will miss.

ITC shorts signal a sidling in of the flat traders and it is probably still adventurous for straddles and strangles to focus on a single 7500 point and increase their risk on the trade though the only sure bet at this bet remains 7500. The Midcap trade will not pick up. The trade in L&T and BHEL, SBI and Maruti is probably misguided north of 2600, 2400, 1600(L&T) and 250 levels. Sun Pharma will likely replace ITC and the infracos in the red zone today at 630 levels. The infracos could not catch a break despite a willing new dispensation and again sectoral signalling at the cusp of the recovery is likely to keep everyone biting their nails at current levels and in many cases without many moves south except the mentioned few above. The Cairn trade has also wound down and banks will lead the way up with the newer banks and to be banks leading the trade when it happens from Indusind, Kotak, YES and IDFC.

Interest rates in Indian Fixed Income markets have hit the ceiling near 8.75% and the Rupee ready and willing to move to stronger levels soon as a definitive news item on Iraq reaches shores.

As we mentioned Tuesdays will remain busy for us this couple of months.

Have a nice buy day in the markets again.

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