India Morning Report: Markets north of 8000

And may not necessarily break for you and me before they strike 8350 marks next and return back to previous levels at 7700 or lower. However one has no new buys in this market and the market is almost completely selected by different investors classes. This strong move north will probably decide the peak of this rally however it may not be very sprightly as no new buyers are expected to increase market momentum from here. The focus on Sold Puts as the floor of the rally at 8100 to 8400 is interesting though at least 50% of OI in Puts is likely to be at  8000 and some 7900 levels at its best for this series

Selling down of PE stakes in Indusind is probably an expected event however the bank seems to have also failed at generating further investor interest hampered by the challenging industry conditions and an incomplete diversification of vulnerable concentrated businesses

The heartening slowing of speculation in Real estate markets and still under evaluation stocks like SBI is likely to remain the lasting ‘investor interest’ segment of the rally noise.

Also equally staple would be the strong accumulation led rise in levels in Bharti and ITC

The return to infraco investment is key to a lasting breakout and is yet waiting for a clarity on whether policy or on ground performance will be key

Also of interest is the ONGC attempt at a $7 Base price for Gas from the new find in Ultra Deep Sea  segment UD-1 of the KG basin gas blocks. The Mahanadi pricing of  $15 at break even actually accounts for just under 50% of the proposed production for 2014-15 and the Oil and Gas major needs to get Government’s OK for resetting prices currently established at $4.2 per MMBTU last year.

 

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