Of course at 5400, Credit Suisse has been among the first to suggest switching out ‘staples’ of this market rally from Lupin and Sun Pharma to Reliance and Tata Motors, but there are others who had switched off banks for a whole week or ten days that will come back to keep this rally juiced and Nifty moving firmly above 5400 midweek before Bernanke’s machinations cause a little bit of seasickness on the voyageful sailors
The Rupee as always starts the week scared of such firm commitments to the Equity Capital markets which have hit $10 B early last week. The market is also trying to capture for its select club, the traders who are trying to lock in the 5300 and 5400 puts on the bullish side for the index and the pre-open session is week. The Rupee again instigated to reach 55.9 intra day and come back
Coal india is still sagging though switches could have helped the stock. Fixed /income yields at 8.23% would have no room on the upside and if they do move up instead should be taken as a strong beaish signal. SBI CDS quotes were a gigh 320 basis points last week according to Reuters reports and that is shocking given its actual survival map being a successful bore except for 5% NPAs vis a vis Derivatives exposures worth $100s of billions at RBS, Barclays and the Big 4 in the US which have CDS spreads subsiding below 200 basis points
Maruti might be good for a short but hardly others and ITC should not be exiting the rally on profit taking yet.