This week Indian markets moved dropped 1.8% on the back of weak IIP no’s, confirming a slowdown and various global issues like the European debt crisis. We will continue to be in an uncertain environment with the US in spotlight; they have an august 2 deadline to increase the debt ceiling and with it go some strong austerity & tax increase measures. The politicians are debating endlessly and posturing at the cost of the global economy. The Infosys results came in below expectations and had a 5 % rout on its prices. On the global result season, Google, JPM & Citibank came up with better than expected results. We need to see what happens to the global majors now that QE 2 is done with. The Europe banking stress test has been completed with 8 banks in trouble and the overall banking industry needing $88 billion of additional capital. This week the Indian & global markets will continue to look up to the result and also the US debt talks, markets still hope that the US will get to increase the debt limit, the S&P has put US on rating watch too. In India the indecision of the government will also take a toll on the growth going forward. E.g. The wheat export clearance has been given after 6 months of excess wheat in and them rotting in go downs. Technically markets are in a consolidation mode and trading < 200 day moving average. It is tough to trade the range till a breakout is confirmed. The derivatives position for the week stands at Rs 134115 Crs in OI; the PCR is at 1.18 the option IVs for Calls at 17 % & Puts at 19 %. The Nifty Future is trading at a premium of 5 points to spot. Nifty on 16th July: 5581
Nifty trading ideas for the week: Range Trading, Sell on a break of 5580 for a target of 5460 SL 5640
Stock ideas for the Week: Sell Telco around Rs 1045 for a target of Rs 1000 SL: Rs 1055
India week ahead - 18th - 24th July 2011
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