India Morning Report: No, Don’t retreat yet, the big correction is still a “Bull Trap”

Buyer Beware has finally run out on the Indian markets with FIIs calling the shots and markets building up new shorts after getting beaten just two weeks ago in anticipation of big runaway blocks of such investors are likely to be tried and hanged at the 6000 Calls they are writing only that they would need an off late big time hunger for a newspaper worthy event ( headline making epoch, ye all would say on the fairway) and NMDC pricing at just a 10% discount leaking hardly qualifies as such demanding adroit drifters thrown out of every other market as hot money would crash out of their positions in NMDC in a few minutes in such a discount leaving another red faced Public tragedy of Indian governance to quote BRIC menses into grading india behind a Brazil. That of course is a set of complicated mistakes by a tremendous half dozen top earners being qualified as wastrels by others still to get their FX licence but a PSU Divestment should have ideally happened at a 30-40% discount which I think could even pump and prime the market and not count as blackmail either. 

I know the above is a single sentence but this writing is not an unedited version and there are enough layers in each play in the Indian equities currently to preclude any bear run or on the other side any sunny investment or a investment worthy correction for DIIs waiting now for well over 3 months since the rally began. That said, no Dr Reddy , Tata Motors, Reliance Infra or any PSU banks have become value picks or latent risers on the side and such trading may well turn into folly sooner than one thinks too. Yet sugar has been a sleeper and even to keep the indices level here at 5900 if not 5980 levels, one would need a big drum of weed to fool anyone of value being available in the market, yet the market will not stand for even a 5% correction without anuy short builld up being squeezed on the upside. Merry christmas and the fireworks can stay on for a few more days.

I am still more than happy with the prospects of ICICI Bank, HDFC Bank(on different days) , ITC, IDFC and even Relaince infra but after real performance is followed by another bout of real backi up buying by the promoter team that Anil has now. 

In sectors, Healthcare has been drubbed on low PE for so long it is stil Sterling and well on its way up.

 

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