Day before yesterday, IT pushed the market high.
Yesterday it was Metals.
Today it is Banks that are strong.
The million rupee question is - are there fresh legs for this rally? Can something take the market higher from here.
I believe tomorrow's results from Reliance should more than provide fresh legs to this rally - from multiple perspectives.
- Despite a small weakness in GRMs relative to Q3, Reliance should actually be able to compensate for that with Inventory Gains relative to Q3. A 5% drop in GRMs will be easily compensated by about 10% increase in Inventory gains.
- There are multiple reports that Jio is ready for launch - and it looks increasingly like Mukesh Ambani will use tomorrow's news opportunity to kick start public launch of Jio.
- I believe the biggie in the room is that Reliance will announce that they are reaching the end of the funding cycle for Jio and Reliance Retail. That these companies will now be able to sustain themselves on their own, without ongoing support from the mother ship.
The combination of all these things should see huge boost to Reliance shares, and this will be what pushes the NIFTY beyond 8100.
Yesterday it was Metals.
Today it is Banks that are strong.
The million rupee question is - are there fresh legs for this rally? Can something take the market higher from here.
I believe tomorrow's results from Reliance should more than provide fresh legs to this rally - from multiple perspectives.
- Despite a small weakness in GRMs relative to Q3, Reliance should actually be able to compensate for that with Inventory Gains relative to Q3. A 5% drop in GRMs will be easily compensated by about 10% increase in Inventory gains.
- There are multiple reports that Jio is ready for launch - and it looks increasingly like Mukesh Ambani will use tomorrow's news opportunity to kick start public launch of Jio.
- I believe the biggie in the room is that Reliance will announce that they are reaching the end of the funding cycle for Jio and Reliance Retail. That these companies will now be able to sustain themselves on their own, without ongoing support from the mother ship.
The combination of all these things should see huge boost to Reliance shares, and this will be what pushes the NIFTY beyond 8100.
