Bharti is the big move of the week as the markets otherwise re rate RIL and other index stocks back to the new levels and Bharti pays for its subdued profitability that is finally seen by the market as continuing for a couple of years. Also on hand is its losses in market share and pricing of old spectrum with new tariff, keeping a new bottom of the utmost importance and costing more than a dozen mutual funds dearly in their bid to changeover the heavist weighted investments. Many of them are named blue chip funds!
The Vedanta offer was amazingly bidextrous too, the group managing to underwrite debt of INR 1 T if it does get this offer accepted by the government and paying INR 21000 Crores or 10X times the suspected settlement price for BALCO and Hindustan Zinc earlier. That means that any new optimism on Sesa goa and Sterlite is more than a little misplaced though. Back to the longs, for the market is indeed in a bull orbit, I still bet banks and SBI and Bnk of Baroda stand out despite the ongoing strike . BOB moves from 645 to 665 likely and many on the networks including Miutesh Thakkar and SS back that one.
Markets are actually trying to keep the bubbly from frothing over and the markets would thus move up but as cautiously as the last 5-6 weeks. A new move on Indusind however is best missed till the August series is settled. F&O arrangements continue on selling the 5400 puts many did not in expected correction yesterdaya s the market carries on from yesterday’s first hour correction to newer levels, its only sign of impatience and a sure trap for the bears waiting for a bigger correction esp in the series that expires next Thursday