Last week we had stated, “We re-iterate, once the uncertainty factor is discounted,
domestic mutual funds and institutional
investors will find value for money especially in the ICE sector, which is where all the
action, and more importantly, the growth potential is.” The
resurgence witnessed on Tuesday after a long drought in the market was partly on account
of the same and partly perhaps on account of settlement closing considerations at the NSE.
Yet, its too early to get out the bugles, as the market continues to remain in uncertain
terrain. The remarkable resurgence of Infosys Technologies, which led the resurgence on
Tuesday, has brought considerable cheer to a beleaguered market.
Traders can thus again strike while
the iron is hot and those with a bullish
temperament can consider long positions at
the counters of Wipro at Rs. 2,319 (square up
at Rs.2585) and Mastek at Rs. 1,722 (square up at Rs.1809).
Bear
operators could consider taking up short positions at the counters of ITC at Rs. 789 (cover up at Rs. 751) and Reliance
at Rs. 341 (cover up at Rs. 322).
Finally, the optimal strategy for this week is an extension of the last week –
continue buying selectively.
(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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