India Morning Report: Markets ready to move on from 6500?

The week’s last two sessions could see more consolidation around the 6500 mark as Infy points out the limitations of doing business with increasing investments and giving clients continuing discounts at the same time. Sun Pharma also seems to have bottomed out at 600 in the same vein and the stock could lead back to Pharma picks like Lupin and Glenmark, Auro and Cadila.

Stock specific picks dot the landscape now as IT and metals remain bearish sectors as a whole but stocks like ICICI Bank look comfortable even at 1200 levels showing the market nose remains up and today’s afternoon trades could define the next target as either 6600 or 6800 or another. one also feels trades ahould avoid Tata Motors like most agree to avoid RCom and Sesa Sterlite. Infy should in any case not drop below 3400, first quotes of 3350 likely a bottom for the coming weeks of buying

The SGX Nifty has probably been fooled by smaller volume of trades as the Call Auction shows buyers angling for available price cuts to pick up stock confirmations at lower cost and market correction midday could provide just the required opportunity to buyers. One also expects a pick up in stocks like BPCL just taking a breather at old highs of 420 to be available at 400-410 levels and GAIL which reached 360 levels last week.

Inflation and IIP data was decidedly buoyant with Urban CPI even going under 8 at 7.7% and CPI forecasts firming up under 7% for the year and IIP at -0.2% for December and 0.1% for January happy enough with a -0.7% score for Manufacturing as Mining recoveries help it cross into positive terriotory and Capital Goods degrowth remains a concern

REC and Power grid seem to have completed the first half of the long trade to 203 and 98 levels and may give a comfortable 10% bump following the trade in IDFC which at 115 levels is good for a move to under 130

Hiring Markets could also see a return to bullishness globally as banks continue to battle with weaker trading volumes byut Investment Banking and retail banking business have more or less put the crisis behind them

I personally had a mixed day too for a change as the IIMB FPM programme had apparently more applications than my grades deserved for an interview call(!) Its almost the first time after Twenty years I have started being refused interviews



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