With the Nasdaq slipping up again, the ICE stocks in India too are feeling the brunt and
their share prices continue to remain depressed. The action, at least for now seems to be
focused on the old economy stock counters. With the Union Budget announcement round the
corner, it is noteworthy that the normal sense of euphoria that precedes it is missing.
This might turn out to be a positive as in
the absence of any great expectations from the Budget this time around, the announcements
could be better received by the market than otherwise. Thus, it might not be altogether
unlikely that a post-Budget rally may materialize.
Punters could take advantage of this
situation and bull operators could consider taking up positions at the counters of
Rhone-Poulenc at Rs.749 (square up at Rs.791) and BHEL at Rs.168 (square up at Rs.179).
Bear operators could consider taking up short
positions at the counters of Global Telesystems at Rs.560 (cover up at Rs.536) and
Pentamedia at Rs.236 (cover up at Rs.208).
The dark horse pick of the week is
Corporation Bank whose share price has retreated marginally after having moved up sharply.
Yet another bounce back could be in the offing.
(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.)