Pre Closing Trading Strategies August 13 – 17, 2012 – Tuesday

Markets try to avoid excess volatility, leaving scrips like JETAIRWAYS and YESBANK with new generation interest only to a accessory pile as Axis builds up the big move, ICICIBANK trading 13 bucks over yesterdays close and HDFCBANK also looking strong. 

A warning to those who read my reports regularly, apart from ORCHID which has been dumped to favor cashflow led market increases in indices there is some big sell on nes in OPTO which has not hit the wires and OPTO is trading 10% down as results are due today and some big miss is afoot. 

Also even though Bajaj Finserv(Insurance) , Bajaj Finance ( NBFC- Consumer lending) M&M Fin and Reliance Capital continue to be strong winners, Reliance Capital is seemingly catching up with higher costs in  Auto insurance according to an update from Macquarie. This rally is of course still good for Reliance Capital as it moves up to barely 360 levels

Copper shorts can be closed out and a fresh long looked up within this week. But Crude is likely to break soon even if just saying somay not threaten buyers ansd inelastic demand faces fresh supply lesions despite Iran havng been cut out of the equation long back, dubai piping up on the issues surrounding Iranian oil. 

Natural Gas is a good short at 153 as it probably retraces to sustainable price levels while producer Reliance is a good buy as GRMs in the refining business are also growing apart from the prospects of being reimbursed government share of costs of E&P in KGD6 for 2 years. 

Banks did not do enough today and that is a green candle for tomorrow. India’s Fisc is about to turn the corner (or so it would seem as the market cannot ask for a rate cut before that, whichis perfectly rational way of saying markets define irrational expectations) 


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