The good Q1 results posted
by Infosys Technologies has provided a temporary respite to the market, which looks weary
and appears to be visibly struggling to surge ahead. Now that this major event is over, it
might not be surprising to witness a sharp downswing from here onwards. We firmly
believe that there is not much good news round the corner. In fact, Alsn Greenspan, the US
Fed head, will be back in the reckoning during August and the Nasdaq too appears poised
for a correction.
Given the
large outstanding positions that continue to loom large over the market, there are fears
that when the sell-off begins, it just might snowball into a very sharp fall reminiscent
of the post-Budget crash that occurred at our bourses.
Yet,
traders can continue to take advantage of the likely confusion and those with a bearish
temperament can consider short positions at the counters of
Inofsys Technologies at Rs. 8,586 (cover up at Rs. 8,313) and Zee Telefilms at Rs.
475 (cover up at Rs. 438). Bull operators could consider taking up long positions at the
counters of DSQ Software at Rs. 967 (square
up at Rs. 1,067) and Global Telesystems at Rs. 1,179 (square up at Rs. 1,236).
Discerning
long term investors can consider exposure at the counter of
Otis Elevators. The optimal strategy
this week again would be – book profits and await the inevitable correction.
(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.)
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