India Morning Report: Breakout hints at higher expiry close

That ofcourse means that with a vanilla bull easily cramped by fresh shorts also at 7500, the market could easily see one more pricing push on expiring strategies for Thursday as they mark markets back to 7550 levels before the markets indeed breakout to a 7600-7700 expiry in line with the 7700-7800 move likely pre and post budget in the July series. That also leaves ITC to catch up as any excise price increases are hardly likely to affect the demand for its core product range and it continues to score better with its newly established food brands and the continuing growth of modern retail after the confusion of FDI in retail has been crossed to a final side. Including unlisted (ecommerce) business that is likely to mean a growth in more Consumer durables and FMCG businesses this year in a recovery economy as the focus shifts from food and groceries.

Back on the sectoral punch for the listed business, Banks had a nice recovery on Wednesday and expectedly led the markets to 7600 scores on the Nifty even though it looks a little dwarfed on the Sensex with just 25400. Banks will be hoping to expand spreads on loans int he declining rate scenario esp as ICICI Bank leads with 25% growth in the retail book and SBI will also consolidate its bent of business in Home loans and other retail. HDFC Bank/HDFC will again lead on profit margins in the Industry and YES Bank will surge as it builds a new portfolio in retail even as Kotak continues to contract its abnirmal margins at above 4% in retail and non banking financial services business dies down with low volume business in the new fiscal in broking and insurance(life) The fund manageent companies are also likely waiting for the direct business structure to again deprioritise in favor of distributors with investor power.

The morning’s moves on the currency again likely mean the week will go a wastin’ watching the price of Oil and markets may well test back to 7500 levels Bajaj Auto is likely to share its spoils with Hero intraday as end of month calculations of revival in demand score for the back of the pack (Hero) before returning to a Bajaj Auto and Heromoto pair with Hero still making its first export contracts.

Gold and Crude look set to trend down and in sectors, Power NBFCs continue to score ont he trot for a second day with positive announcements from REC

 

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