With the latest Morgan Stanley Country Index turning out to be less harmful than feared,
an undercurrent of bullishness seems to have returned to the Indian market.
The corrective bounce-back of the Nasdaq also
seems to have played its role in reviving some confidence at technical counters. Despite
this, the general consensus is that the sentiment in the media and technical counters is a
There are fair trading opportunities on offer
at the moment and bull operators could consider taking up long positions at the counters
of Satyam Computer at Rs.381 (square up at Rs.419) and Visualsoft at Rs.905 (square up at
Short positions could be considered at the
counters of Pentamedia Graphics at Rs.382 (cover up at Rs.355) and Bajaj Auto at Rs.272
(cover up at Rs.249). The long-term pick of the week is Mastek and the optimal strategy
for the week is start unwinding long positions if the market rallies.
(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.)