India Morning Report: Oh, the bright and cheery session before the weekend!

Of course currently markets are trying to tuck themselves in around 6700 but the holidays have taken their toll on those who are already tired mincing and spinning i guess, Modi’s fortunes to the last even score. It may thus be the dull, deadbeat session that just remains barely positive and optimistic thru the day. However, a longer term horizon for the market looks positive for banks and other cyclicals , one good performance boost coming before the interest rates start moving down. Kotak seems to have improved spreads further to 5% (4.97%) on reported quarterly results as Baseel II ratios start looking ugly on the other side with 18% coverage for its assets, making the deprioritising of lending questionable fo r the bank, unless there are liabilities in terms of off balance sheet assets and questions on the capital itself counted too optimistically

The markets can well decide to close near the 6800 mark before they open on Monday. Infra is in again and that will likely be good for the Indian markets too going forward.JP Assoc at 55 and Relinfra at 520 however are very short term trades in the next 1-2 sessions. Maruti has a long down side to catch up with as it is set to report a poor April. M&M too is likely short for the same this weekend but investors remain long in the scrip. Better long picks are indeed IDFC and LIC Housing Finance while Yes Bank retains new levels till the ICICI Bankr esults are out of the way

Bharti Airtel and ITC are still good longs in cash and futures at current levels. Hero is a good short on celebrations of April auto sales as the focus shifts towards Cars. Try and wait for 2300 marks before engaging a short in the stock

The Advance Decline is healthy enough at 600:200 for th emarkets to finish about 250 points on the Sensex and 60 odd points on the Nifty

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