Finally a small intra day bet on the Dollar overnight
That is all the correction in the Rupee amounts to for speculators as they use the pre open deadbeat sentiment in equities to climb to 54.90 in Spot and 55+ in November. However the equities are likely to open and stay upbeat as the overnight trad would be lost by 9:30 and isnstead of a BTST bet on the Dollar, Rupee will follow global cues against the Dollar as we suspected yesterday after the recovery of the 10 Y yields to 1.60%
The questionable stagnation in equity levels
Though there have been occasion when investors have stayed on while the sentiment weakened we would still aver that this time investors staying on have quite some skin in the market and thence this 5600/5650 level is unlikely to be breached as the Private Banks try to reach a point for the high jump statistics to get loaded on the Risk curve and Shoot for the moon. Unfortunately this is the first sign that the market is unwilling to move without bets in Banking making the Sector that accounts for 1 in 5 of the GDP orth 1 in 2 in influence as it makes a good companion for each such investable sector including Automobiles, Consumption and Lifestyle (Non discretionary or Discretionary and luxury), Pharma, Insurance and NBFC, Utilities, infraco and Aviation except that Jubilant and Educompa re unlikely to start off the festivities and the Jet Airways rise by itself i s unlikely to sustain ( as above)
Also Construction will yet drag as credit to the Sector has come back to manageable but real estate buying is yet to pick up and has been an over rated play surrounded by quicksand margin calls.