The first trading session of the new year seems to suggest that the undercurrent in the
market is still nervous and sustained selling by domestic funds and downsizing of open
positions by operators has translated into a picture of a market that is yet to find its
Even amidst this confusion, there are trading
gains to be had and those with a bearish sentiment could consider taking up short
positions at the counters of Infosys Technologies at Rs.5,669 (cover up at Rs.5,487) and
TV18 at Rs. 255 (cover up at Rs.231).
Long positions could be considered at the
counters of Cadila Healthcare at Rs.152 (square up at Rs.171) and Telco at Rs.88 (square
up at Rs.99). The dark horse bet of the week is Mastek whose stock has been beaten down
sharply but could bounce back as things could only get better herefrom.
The portfolio pick of the week for discerning
investors searching for value among infotech blue chips is Hughes Software whose current
valuation does not clearly reflect its intrinsic strength. Yet again, the optimal course
of action this week would be to continue 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.)