Tuesday, September 14, 2010

Bulls hell-bent to step back, side counters to gain

Wall Street investors cheered Basel norms, resulting in a positive close for Dow Jones and Nasdaq on Monday. Basel-III, as it is popularly called will require banks to hold more capital than they did before the crisis. Banks will have time till 2019 to comply to these norms.

Bank stocks on Dalal Street had a feast yesterday partly due to Basel-III though India's banks see no significant impact at this point of time.

Asia trading mixed

After big gains yesterday, Asian markets are trading in red with Japan's Nikkei losing half percent. Meanwhile Australian shares moved up half percent.

More positive talk on the street

This is how things change overnight as far as equity markets are concerned. Analysts who are extremely bearish till yesterday started turning bullish. While Analysts at DStreet stick to the same analysis, momentum seems to be on the bullish side for the time being.

Dalal Street's valuations are getting expensive at least from FY 11 earnings perspective. The current up move will be more dangerous without meaningful correction. Having said this we are still invested 30-35 pct in our real-time portfolios.

Expect a choppy session today after a positive open. We expect the side counters to gain after missing out on yesterday's rally

Stocks look good for an intraday upmove in the descending order of priority

Tarapur Transformers
Arvind Ltd.
Balaji Telefilms Ltd.
Arvind Ltd.
Kingfisher Airlines Ltd