Markets will cheer the CAD gap narrowing, the build up to the election result will take markets higher

Markets will cheer the CAD gap narrowing sharply to USD 5.2 billion in the July September quarter.  Better exports and the decline in gold imports have resulted in the CAD coming down from 5% of GDP last year same quarter to 1.2% of GDP in Q2 of this year. Both the government and RBI are expecting the CAD to be below USD 56 billion in the current fiscal compared to the record high of USD 88.2 billion, or 4.8 percent of the GDP last fiscal.
Election results over the weekend and US farm roll data on Friday will continue to be the most tracked events, especially for market direction next week, but this week markets will remain upbeat on the back of good economic data and the build up to the election result date.  The positive mood is reflected by most brokerages with lot more BUY calls coming for the day.
FII’s too seemed to have taken new long positions, the December series promises to be exciting and volatile.
This week is Bulls Eye week on CNBC TV18 and I go into the 2nd day with all buys:
Amara Raja Tgt 334 sl 321
LIC Hsg Fin  Tgt 212 sl 206
DCB  Tgt 52  SL 49.8
Aurobindo Pharma  Tgt  315  Sl 301

 

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