Market Comments - Resilient Bulls

I had expected that markets would tank 400 points based on US cues but Bulls were Resilient to fight back. This was evident after we had an opening of only 100 points downwards which should have been 300. This is good for our markets as it shows that our markets are becoming Resilient to US markets and moving towards destination 16K.

This is going to create an interesting battle for Bulls and Bears. To predict the market in short term is extremely difficult. Today market will be volatile and we may see some downward bias. If Bulls manage to move sensex up by another 100 points then lot of short covering should take place. However lot will depend on US cues in the next few days and if US Markets tank further then it will be difficult for our markets to escape.

IFCI has moved up smartly by more than 20% from my recommended level of 60 and as per sources the bid is going to be easily more than 100 as the competition is getting hotter.

Share holders will benefit if the stake is bought by single entity as according to SEBI rules if some one buys more than 20% stake of company then there should be an open offer to buy shares from other investors. This will naturally boost IFCI price. I believe Reliance Capital is keen in buying IFCI stake and so it can even go for 100 Rs plus to acquire 26% stake.

GMR Infra record date is October 8th and the rush to buy before split will start soon. In fact stock split will act as cushion for GMR Infra even if there is a big fall.

PTC, NTPC will get re rated because of power grid corporation IPO and so they will make smart gains when power grid is going to be listed.