India Morning Report August 22, 2012: India still lags in performance year to date

Though Indian markets came and they conquered nearly to 5450, now is not the time to gloat and run ahead of the pack as market premiums remains sensitively aligned to everyone except the consumer staples and FMCG and the consequent overweighting of healthcare and the select stocks that have moved means the Bank nifty wil take another break to let others fall back and probably before the week is over we will again see the move beyond 5450 and today below 5400 enabling fresh buying within the yet expiring and not expired August series in Puts to be sold and calls to be bought, the market giving another chance for derivatives volumes in this series to balance up if it does fall below 5400 before which no buying is likely and any upmove like chancing Dravid’s arm as leg spinner an hour befor eIndia’s batting opens. 

Of course a heavy cricket season starts at home, for the first time devoid of Dravid completely and with the U19 team doing well, another double awaiting India in both the Juniors and Seniors’ world championship. 

Coal is a non starter as an issue and unlikely to affect business. infy is unlikely to rise but the news is a happy one. We mistakenly assumed Maruti was near 1230 ( I misheard a commentator) when i said short it as the big long is justified by investor interest in future prospects and not by consumption levels recovering on the ground and the happy news of a plant reopening and a legal solution available could mean bigger moves up, biocon has not truly explored potential and Sun Pharma has fulfilled the promise it made a few years agoi with Taro, in country SPARC product sales and pipeline and more. Tata Motors and Tata Steel are availabel for those considering a switch at the top abut as i said the index will likely hit loww notes before 11 am itself or before 1 pm at best and then reaffirm if it indeed wants to go up. If it does not, it will hang on weak shoulders tomorrow and even on Friday till it does. 

 

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