Last week the Indian markets moved up by 7 %, as expected, the oversold conditions fueled by the 6 central; bankers coming in to provide adequate liquidity and the expectations of a EU debt management solution during the meeting the coming week has added to the global up move. In India the food inflation came in better at 8 % and the GDP number at 6.9 % came in better than expected. The FDI impasse continued with opposition disrupting parliament for 9 days, it is unfortunate that an agrarian economy like India not going in for FDI in retail. The consumers will be the biggest beneficiary and will help the inflation come down drastically due to competitive pricing and technology around storing & delivery which can help farmers realize better prices and avoid wastage. The political parties are playing to the traders vote bank and are taking the country to the dark ages. The Indian democracy needs to mature and cut across party lines for good policies. These moves have affected decision making & governance. Such moves will push back India as an investment destination.
This week the Indian markets may take a breather and offer a correction to the sharp up move noticed last week. The EU leaders meeting on 8th Dec will be eyed for global cues. The Debt auction in the EU countries will be watched for direction of liquidity. The FDI in retail will take center stage back again, with Mamta holding on to her stand opposing the move, there may be a temporary stop to driving this hard by the government.
The derivatives position for the week stands at Rs 107684 Crs in OI; the PCR is at 1.31 the option IVs for Calls at 21 % & Puts at 24 %. The Nifty Future is trading at a 30 point Premium to spot.
Nifty on 2nd Dec 2011: 5063
Nifty trading ideas for the week: Sell around 5060: Target: 4950 Stop Loss: 5080
Stock ideas for the Week: Sell Sterlite around Rs 110 for a Target of Rs 100 SL: 112