NSE forecast
By Ashok Kumar | 18 Jan 2000
For the NSE trading cycle week beginning January 11, 2000 it was predicted that the market is on slippery ground. This point has been driven home by the developments in the past one week. In fact, had Hindustan Lever not rallied sharply, while infotech stocks continued to tumble like nine pins around it, the indices would have reflected a much clearer 'as-is' picture of the situation at the bourses.
However, the cut in the PPF rate, though debatable, will definitely spur market sentiment, sooner rather than later. In fact, once the infotech pivotals are driven down to more realistic levels, it might not be surprising to witness a fresh surge in demand at these counters later in the month.
Traders with a bullish temperament can consider taking up long positions at the counters of Infosys Technologies at Rs.11,625 (square up at Rs. 12,490) and HCL Technologies at Rs.1718 (square up at Rs.1796). Short positions could be considered at the counters of Sterlite at Rs.507 (cover up at Rs.471) and Hindalco at Rs.929 (cover up at Rs.901).
A long term commitment could be considered by discerning investors at the counter of a highly efficient PSU, Container Corporation, while the dark horse bet of this week is Tata Telecom. In the meanwhile, those who have booked profits at higher levels since the past four weeks can now be seated on the fence and await an opportune moment to re-enter at lower levels.
(Ashok Kumar heads Lotus Strategic Consultants, Mumbai. While due care has been taken to prepare this report, readers are advised to take specific investment advice before taking any investment decisions.)
