India Morning Report: Markets dodge the overvaluation scare with timed tears in the market fabric


It could still be a time to buy..

Ofcourse anysuch big move like the inflow of INR49.50 B in September would cause the 6000 target to be completed in December on the Nifty. The time to buy stems from recent well timed correctionss bringing up time to fill the tears in India’s struggling and listed consumption story.

The tear in the consumption fabric has filled up

While markets are tentatively suggesting a bad Q2 which just means it would not be a surprise when it does land, the mid cap Consumer plays have filled the gap for seasoned traders with Dabur still on play today at 135 levels. One feels similarily Lupin, Cipla and ITC and Bharti Airtel could be buys and no one attempting shorts on those plays will land anything tenable this week or next even if the markets stay in consolidation not uptick.

Real consumption is going to bring the real scare..

It is also similarily obvious that despite the protestations, Q2 results will actually revive profit growth and thus the real scare is that the slowdown has continued from September into Q3 and thus the jump in September results will be actually followed by a dumping result of the real bottom in December while India’s services PMI supports the current India outperformance fable perfectly with a 54 mark from 52 in August keeping india in the lead with 5% + growth globally. 

Time though for the banks to not rise too fast in the meantime and HDFC Bank is right now correcting sharply to keep the indices from floating up beyond reason for pressure on DIIs and other traing FIIs to enter the market at this stage and book 200 points on the NSE indices having already spent two-three months waiting

THERE ARE NO SHORTS on HDFC or HDFCBANK implied in his report


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