India Morning Report: Markets do not have to correct at all, there is no such requirement

Sudershan Sukhani gets another look in on our bullletin if only for the 100% trader’s attempts at catching a correction again at 5700, with sell calls on Biocon and Reliance Capital. Anil Ambani is easy pickings though the rest of them may not move and then you will lose that one too. I am not on any 100/30 strategies this sector of the market and think 5700 is absolutely valid for the market to start any move. Though if you want to , markets might oblige a 30 points in the new series as they assess whether another move like the first week of october can be absorbed in the markets.

Another fuel hike well and truly puts paid to any political ambitions of the MOF /Chidu and a rate cut is impossible to clear on Tuesday. Energy stocks get another sleeping level move, unlikely in any other sector in India and the positive rerating, for a change, is long overdue in the sector from ONGC and GAIL tot he OMCs and even Oil India which has been neglected for a good 5 years now but may soon become more active as ONGC Videsh runs out of the big plays it had been sitting on. The piped gas plays similarily are interestingly undervalued but waiting to staay with Market Beta than move independently again after having moved once on fundamentals in the last three years.

Bajaj Auto and Dr Reddy might be the convincer markets need to move up and printed good results. Banknifty has definitely made a fresh bottom support at 11600 now and ICICI Bank results can only move it north. IDFC is back too and so bets might change by 10 am from Sells to Buys on the trading stocks too.

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