Late Late Morning Trading Strategies – India July 09, 2012

Good Afternoon to those who have spent the last couple of hours checking the market indices and its capacity to hold 5290-5300. The market is brilliantly poised and as the Dollar rally runs out, Rupee’s rally might soon begin to 54 levels with July trading 56-56.15

The morning’s biggest find was Coal India which also hasn’t moved around its ‘lifetime’ highs However its offtake / production of coal has fiurther improved from 33MT as late as last month to 40 MT per month last week and another 10MT per annum or 41MT per month being the final production meaning much bigger profits and the FSAs could come back and help CIL itself with Environmental Ministry clearing 14 other production facilities (askeds) and Users / power plants picking up their coal from CIL facilities much like the Bellary Iron ore trade at its peak.

For COALINDIA  348.50 is a good enough price esp as Markets hold. Hexaware is an even better short at 121

Liquidity has improved in the Indian markets since last week, OMOs counting to less of the Interbank supply and the Rupee could be making a big move if that is not a flash in the pan. diesel hike is coming ith WB not holding out as it awaits a loan write off from the Center ( INR660 B) The iron ore trade is back and JS back to full production maybe in a few weeks

The Euro is going to hit 1.20 so if that is the reaso rupee exists, Sriharikota we have a problem. The AUD will also get weaker after a big jump on Friday taking it periliously close to parity as the RBA wants a stronger domestic economy in contrast to its historic import consumption reliance

Sri Lanka Premier League finds most of our exporters busy with purchases on the island and most Pakistanis have finally found home in a Sri Lanka City/district team. Oh yeah! OIL is down too, and down a lot so only BPCL will be trying the upmove

HCLTECH is looking like the most delicious SHORT 


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