Bookkeeping: Adding to HDFC Bank (HDB)

Indian stocks have been very weak the past 3-5 days as India announces an increasing deficit to stimulate their economy. HDFC Bank (HDB) has pulled back to its 50 day moving average where I am going to purchase some shares and take this up to about a 1.9% stake (up from under 0.1%) I am buying just over $93 and will stop out at $91 if I am wrong for a very low risk entry.

I actually was considering this name as a short at the end of last week as it is one of those "gap fillers" and did not pull the trigger, unfortunately as it has dropped 10% very quickly. I still want to short it - but at higher levels (closer to $100). Or on a break of the 50 day moving average - either/or. The "gap" is down around $81 and I think it fills within 6 weeks.

In the meantime I am going to try to thread the needle (going long temporarily) anticipating an oversold bounce both in US and emerging market indexes, while also awaiting one in the "reflation" trade. I expect the bounce to be short lived if it does come. But I'd like some more long exposure if indeed it comes to fruition. Again, if wrong I am sacrificing under 2% in this trade - my upside target is high $90s.

Long HDFC Bank in fund; no personal position