A directionless day awaits us as everyone in India is out of options, esp evident in the flurry of market recommendations in the markets and bearish prognosis from Jim ‘O Neill and of course Jim Rogers, both almost indistinguishable because of the stress on Indian and equity premiums.
Bond buying of a different kind has already begun in Europe stealing precious liquidity from proven cores of self worth like India as investors hurry to catch Spanish and Italian bonds at the top of their yields in the ensuing liquidity rush, probably just before the holidays.
I would advise one however to stay away from trades such as short on AXISBANK as the usual suspects in the BANKNIFTY are still on the down curve except that I agree with only one report on themorning ticker which is more in cue from my earlier report, that of the sell on automobiles , taking a buy on Punjab National Bank. No india’s reform story is not a hare, it is a tortoise, No money would leave India and thus at 5250 ithe market is a buy more than a sell to “better” levels as new European funds are back only in 2013.
SS sell call on GAIL is also a bit mystifying but I must confess that is one mini set of three companies including private IGL and Petronet whose legal and market price advantages have become issues in India and are unlikely to be clear recommendations in either direction and probably traders are jjust fishing to find the rocket launch levels for such stocks including Axis, GAIL and even SBI. That is why sell calls are futile on these at this point