GDP numbers awaited, Bulls will play for an upside…

GDP numbers are waited today, the forecast is for GDP to remain below 5 percent for the fourth consecutive quarter, Reuters poll puts it at 4.6%. Persistent Inflation, volatile rupee, inaction by the central government and lack of policy action are the drags.  Business investment has shown no pickup and most polls indicate a 4.5-4.7% number.

On the other hand some economist expect GDP to be better than anticipated, driven by better agricultural output on a above-normal rainfall in the September quarter, sustained government spending and buoyant exports which have gone up by 13.5% to USD 27.27 billion in October.

If indeed GDP comes at 5% markets will react positively and build on the gains from that especially as next weekend we will have an important event in state assembly election results markets could get optimistic ahead of that.

With expiry behind us and all eyes will be on the GDP numbers and markets will take direction from that number.  Last day of the game and once again I am long on all 4 stocks:

Hindalco  Tgt 125  SL 120
Jyothy Labs  Tgt 180  SL 172.5
Rallis  Tgt 184  SL 177
PVR  Tgt 635  SL 610


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