The week has been good for those waiting for a clear trend to emerge as the road to 5850 looks swift and clear if not 6000 on the Nifty depending on the Rupee and the levels of the Sensex that can get the indices to a 6000 Nifty/20000 Sensex orbit before seriously considering a technical correction. 

Interestingly the rise in EBITDA margins at Cement companies expected at Ambuja, Holcima nd ACC and reporte at 18.4% at ACC up 500 bps has come int andem with th jump in old textile scrips with Century and Raymond going up 4-6% int he session gicving one quick shots to move into for Friday and for next week. 

Infra and Banks may not move as a mass this time but older stock market favorites could turn up like a shnaghai surprise for investors and traders, with Raymond itself tipped for a 400 target ( Mitesh Thakkar, ET Now) 

Cement scrips are a good pick as JP Associatses finally gets a higher offer from Grasim (Aditya Birla) as well to 130 per tonne capacity for its 11 MTPA plants on Sale to reduce the group's debt burden and synergise in construction services and Infrastructure/Power

Sun Pharma unfortunately could be a miss for Friday and Monday as the markets review the loss of its Lipidoc sales in the US as the original drug from JNJ is probably back in the mearket

ACC NEt Profit of 2.42 B makes it a good pick but Axis and BOB are already up too much for a 30-5% move and I would prefer to go with PNB, SBI which at 821 and 227- are still underpriced and ICICIBANK and HDFCBANK. The isolation of CNXIT could infact augur well for Switching strategies later lengthening the move in the broader indices. A NSE 5850 target is obvious so F&O interest in Futures and Calls for the next two weeks are interesting but it is the latter half ogf the series and any carryforward positions are equally likely to bite overnight

IDFC could start the infraco bite on Monday or Tuesday for another 10% catch up to earlier stable levels from the current depressed prices including L&T and BHEL and not mid cap infra or DLF and construction biggies.

 

Posted via email from The India Investment Post