The Reliance results are disappointing
but the buyback offer at 870 with more than 10,400 crores to purchase 12 crore
shares. This is all to offset the bad news and keep the bears away. The history
shows that Ambani family is not serious in buying. The RelInfra case of buy
back is also became a joke. They promised to buy above 1200 but the stock came
to 350 levels, the promoter himself did not subscribe to preferential issue. So
they buy but they don’t. The new SEBI guidelines forces to buy at least 25% may
whip for that portion.
The banking stocks are giving good
results but the NPAs are increasing, seriously to alarming state. The following
quarters will see more and across. The payment delays to defaults will start
opening up. The good news is that the FII bought 1.16 billion dollars of stocks
from Indian markets. They postponed in December, low valuations attracted,
fueled by Rupee depreciation.
Technically speaking the strength of
market to scale new highs is waning. The up move may get resistance at
5080-5180 for some time. The bottoms are well knit at 4830-35 and 4750-60
levels. So the bears also have limited opportunity to pull it down.
The Infy weak results, TCS is ok and
Wipro is good likely to balance the tech sector as a whole. The Infy may !!!
Yesterday I couldn’t publish…..
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