Morning Trading Strategies – India June 26, 2012

Please read with the Morning Report.

The Nifty will stay around 5110 level s unless something exceptional happens during the day. Pranab Da resigns to enter fray as Presidential candidate with PA sangma still standing. Buy Nifty calls after consolidation survives first hour and shows signs of strength

Buy banks as soon as you seel comfortable. As we mentioned it should first be the SBI, or even Axis Bank, then HDFC Bank and then back to ICICI Bank which could still become the star of the ensuing rally. Do not sell calls even for expiry in the current consolidation. There is more good nes to come and due weightage given to good news already announced. After all, we are not a banana republic and we should not expect regime changing information everytime markets move in a hurry. 

You could keep a few puts in your hedging strategy abut I contine to be sold on Puts. You could sell a fe puts for expiry too. Bank nifty is the one to watch for a break down as well. Defensives might not be very positive today. I am holding on to my Banknifty Puts sold trade as of now but I will be watching

MidCap interest could be subdued except in select counters. Tata Global story or VIP Industries or even Jyothy Labs could maybe avoid intra day action. Maruti continues consolidation with extensive plans to catch up with Diesel production ahead of any plans to remove Diesel subsidies unlikely to be adopted by any Indian regime udner pressure.


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