Monday saw 6100 losing the pins as markets drew interest from investors on good Reliance results. TCS follows. IT and Pharma outperforming expectations similarily throughout will probably see that elusive 6400 mark to set a new Nifty record it at least seems improbably probable. Short hedges should move up to 6600 and 68-6900 levels this week or next. The 6300 call continues to see increasing prospects of a devolving positions as the short trade exits the market. Tata Motors, Tata Steel and Idea may remain strong except for funding trades to enter short profit positions in results calendar Private Banks remain dull as the higher interest regime and larger account restructuring news and its containment are both seen as insufficient and unresolved.
As i write, Indusind is reporting a 37% jump in NII., largely from retail yields as NPAs were contained with market borrowings helped the profits. The cost of deposits if an issue is also likely to nettle the smaller candidates as th month’s bank policy confirms continue the higher interest rate regime.
The 6200 market will likely be reached except for a sharp negative news trend with less than 4-5% probability and will continue with IT and Pharma keeping “beat expectations” premium and Metals incl Hindalco and Tata Steel or the M&M picks counting for more buying and thus volumes of trade as the scrips also need boost in liquidity. IDFC and YES, or Bharti, ITC and Bajaj Auto will spring any consolidated market moves. ICICI Bank is finally consolidating to positive marks and Bank Nifty may se a change of the flatlined visage before the end of the week but still unlikely.
10 year yields have hit the 8.65% level but this might just be an aberration as new securities get hocked on Friday with the 10 year adding INR 70 Bln
- India Morning Report: No Taper and Nifty on to 6100 levels (awardz.wordpress.com)
- India Morning Report: Markets out of short opportunities at 5350, Rupee actively down to 68.63 at open (awardz.wordpress.com)
- India Morning Report: Here comes 6000? and what the banks will do in 8.6% yield scenarios (awardz.wordpress.com)
- India Morning Report: Bajaj Auto reaffirms successful transformation in September sales (awardz.wordpress.com)
- India Morning Report: The Question of the Rupee bottoming out (awardz.wordpress.com)
- India Morning Report: Market inches to extend range up (awardz.wordpress.com)