Mid-Day trading strategies August 02, 2012


If you are also quite done with the move down in the Nifty since morning, join the club. However, you should join the club only if you are putting money behind the Nifty now in the afternoon, because that is where the trade is consolidating, rupee predictably still threatening to move to 56 in spot and 56.20 in August

Union Bank results came today ( there are two UBI , Union and United, both are essentially smaller players fighting asset Q) and Speciality Restaurants reported INR 50 Crs mark in sale (49.7Crores) Its premium restaurants include Mainland China

Mid Caps are sneaking up in trade with MANAPPURAM, RENUKA and BALRAMPURCHINI with a lot of upside still left I quite like the Manappuram story with 16 lakh customers and more than $2 B in assets with a 60% margin

Bajaj Auto Sales are down to 308,000 but SL exports have resumed to 4500 units

Shorts are on in Union, United and CBI and Canara Bank but I would suggest to hold on to HDFCBANK and ICICIBANK right now and SBI may have completed the correction

M&M has signed a new JV for Defense equipment which could add large blocks of fresh revenue for M&M. Aviation has a good upmove left in Jet and Spicejet who have been both containing costs and the right sale and leaseback of assets could keep green growth profitable

Maruti is ripe for a down trade if you believe the shorts. The buys have gone by without a run in the morning session again but the afternoon should see one strong move to develop the later strategy on the short and mid term trend


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