Despite the appearances on Tuesday Morning and the potential in Indian stocks on an earnings basis, there really does not seem to be reason for markets to attempt to maintain 6300 and 6400 levels at this juncture. So having negated the bout of corrections in Asia and the US markets overnight, markets are happy enough to hold the 6275 score gained at yesterday close.
Idea and ITC are harnessed and riding the wind, which would determine the ending levels of the index. Infy seems to have been capped and Bharti saw confirmation of breaking down at 335 levels. Unfortunately for Angel Broking followers, the shorts on ITC do not play out below 335 especially with the price rise being likely absorbed by its large retail markets in branded cigarettes, continuing from last month’s first increases in Classic and Goldflake families
KRC have cottoned on to the IDFC plus LIC Housing trades , bullish at these undervalued levels as they hold their own. Their other long picks are Sterlite and Finolex Cables, old trading smarts that are doing well in this segment, probably on Order book highs for Finolex Cable(is M&A also likely this time given their capabilities?). Both have been Volume breakout candidates in the last week. Good to see Biocon making the Volume breakout finally, and probably would sustain new levels too above 500.
I for one would like the shorts to buzz off Glenmark too, but for now Cadilla longs hold with Lupin getting tail as much from its own apps to the USFDA as from other stocks now being fully priced and for Ranbaxy ready to fall by the wayside. Pharma that way is a healthier sector than aapno IT wallahs che with Emphasis and even KPIT looking ready for a big fall as the big depreciation jump in earnings is past and many others reflecting that standard of Corp governance which is good for a slow let down after the halcyon run not likely in the Pharma family of stocks
The December CPI at 10.4% (Rural) and 9.87% (Composite) is still worrying, though the drop is welcome. The drop in temperatures is probably contributing to the 9% tick in Clothing, bedwear and footwear category(CNBC TV 18 flash) is still worrying as the November data affected in this number is just before the start of the real cool season and is likely a sign of the inordinate lack of real market availability throughout the year ( the seasonal demand allowing manufacturers to jump over negative and zero summer production?) and the concomitant supply imbalances bearing down on the price heavily.
The political drama is already at the point where the heightened interest could recede especially for the apolitical class which also determines chronic disinterest in the electoral process and the era of apolitical coming out of the local politician in the known acceptable mould as would have been needing a much higher tick than 8 seats for AAP and the existence of one AAP only to sustain interest. BJP thus with its new canvassing for Anti Corruption ‘saders seems to be in fact abreast for the fight.