India Morning Report: Don’t fall for that downtick again – Nifty keeping gains

The Nifty move is now capped at 6100 but in al likelihood traddles won’t pay before the strikes move out to even 6300 in this series. A straddle play on the increasing volatility given that this is a monthly series and given the propensity for this to be a non breakout kind of economy, it is unlikely that lack of downtick available takes the sentiment positive further.

Those who have taken the short trade would again be waiting 6 months as Indian bonds respond to liquidity, and currency gains couple up equity growth in the new Asia trade India is also playing as the Dollar is now totally determined by the weak yen taking rest stops and the Euro coming out stronger for risk averse investors realising still so late that the currency’s underlying yields have indeed turned south despite the recession numbers being bigger nagatives in production, sales, trade & investment

Bajaj Auto and yes bank levels would be my personal favorites and Glenmark and Jet Airways should be on your lookie loos list for the next move day. Biocon remains a non return catching utility, no new growth molecules emerging while global pharma majors seem to have rebuilt an important pipeline thru rheumatoid arthritis, diabetes and cancer research. Biocon’s existing products continue to deliver superlative sales in domestic and international markets.

Tata Global could be a good shed to hide under when it rains on Jubilant Foods today and tomorrow in either direction but thats just if you were feeling you missed out. Bank of America securities desks for one have been first callers on the bull rally and are switching scrips seemingly ( hazarding a riskier speculation than usual) while UBS and MS seem late on the rally but Credit Suisse and GS and JPMorgan teams look like staying on target while domestic brokers are probably leaning on the index to hope for their larger wholesale customers from Mumbai , Delhi Hyderabad and Bangalore

Reliance, Tata Motors and Axis Bank may have been retired as switch trades for obvious performance reasons and many others with questionable corporate governance waylaid even railroaded by the slo juggernaut.

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