As the tumbledown of the tech stocks continues unabated, there has been a sharp erosion of
investor sentiment in the market. While fears of a slowdown in growth rates of top tech
companies is cited as the prime reason for the sharp decline in prices at these counters,
there is also considerable fear that the worst is yet to come.
Notwithstanding these dark clouds that have
gathered around the Indian bourses, its propensity to bounce back, when all seems to be
lost, cannot be discounted.
Traders could use the downslide at the
bourses to cash in on emerging opportunities and those with a bearish sentiment could
consider taking up positions at the counters of ITC at Rs.898 (cover up at Rs.867) and
MTNL at Rs.169 (cover up at Rs.151).
Long positions could be considered at the
counters of Hindustan Lever at Rs.194 (square up at Rs.206) and Visualsoft at Rs.721
(cover up at Rs.803). The dark horse bet of the week is Elder Pharma whose hidden brand
equity could yield it fair returns in the future. The optimal course of action this week
would be to start making selective purchases.
(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.)