Morning Trading Strategies – India August 01, 2012

I am tempted to say buy the Banknifty, but it is not so cosy yet and that is about the only trading opportunity. My alternative is to stay with ICICIBANK, YESBANK and HDFCBANK today and ofcourse SBI might have some miles left to come back to respectable levels. Axis will catch only on a breakout as it has snuggled up to cosy 1040 levels.

Meanwhile the Rupee has used the low interest trading at VIX of 16 to crane up its stable levels to above 55.5 while the cranking going down is as weak as RBI is interested in buying Rupee which it cannot. Lack of OMOs for example have already been flagged by Stanchart after SLR was cut and European bank cash inflows were unable to get the currency trading down to respectable 54/55 levels though it virtually failed without intervention in the free move beyond 56 yesterday and in fact the entire week of the new series

SBI is last of the high NPA banking projects to report in Q2 and then we can get back to completing our research piece on the PSU bank outlook. New political champions are in North Block as well and one should think NBFCs are not overbought yet, your choice of poison. 

IDBI proved great results are possible and infrastructure of a new age can be maintained as its alumnus now rides the Deutsche Bank Asia Pacific region’s growing business but none of these make trades. Positionally Mindtree and Hexaware are back at good buying levels with the magical survival instincts of a midcap without a Sales and Marketing force in the ranks continuingas the attraction of India’s outsourcing industry

I like KOTAK and MANAPPURAM finance and thus BFUtilities which may not go Infra way as it is a JPMorgan PE investment (JPM exited recently) 




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