India Morning Report: Bulls stranglehold can withstand bigger volatility

Nifty near 6000 mark has a never before volatility level of 13.4 on Friday closing and as I can see it not only is a harbinger for sustained buying (hat tip Mitesh Parekh, but also for a reburnishing of banknifty as a support than a resistance below 13000 without pushing the PSU banks or other resource economy stocks like mining and energy for fundamental buying and thus apart from the flourishing mid cap trades, time is ripe for a big move up with or without Cipla, M&M and Lupin. 

The yes and the kotak stock have been stocking u-p for such a move with kotak backing a call for rate cut and goldman sachs having moved to front and center in this drive with a call for 50 bp rate cut. Of course, Urijit Patel for one is made of sterner stuff but if rate cuts are to happen in the first meeting of 201 they will likely agree that inflaiton has peaked and thus will maximise their advantage to the credit economy with a 50 bp cut. Those out there who still think India has growth possible from cash hoards should hoowever consider sabbaticals and more AML coming our way as the insurance and mf industry growth show the limited capacity of savings to absorb any such parallel economy plinths into the fabric of the one nation that we are bound in the parliamentary system

Again if a big move were to happen IDFC will lead the move deservedly so in this section of the Economy’s recovery and as 2007 told us, DLF or other leveraged astocks need not apply to be the bull chip


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