Despite the market displaying a marginal intra-day
recovery of sorts on Tuesday, the last day of the settlement at the NSE, the underlying
sentiment at the bourses remains predominantly nervous.
Last week, we had stated the panic
button is thus on and with SEBI belatedly moving in to investigate market malpractices, it
seems likely that the drift downwards may accelerate. That is exactly what happened
although the intensity of the crash was fearsome.
Once again, amidst these ruins, there are
trading opportunities and bull operators willing to take a punt could consider taking up
long positions at the counters of E.Merck at Rs.446 (square up at Rs.477) and VSNL at
Rs.292 (square up at Rs.314). Bear operators could consider taking up short positions at
the counters of Himachal Futuristic at Rs. 255 (cover up at Rs.226) and Global Tele at
Rs.188 (cover up at Rs.151).
The long-term portfolio pick of the week is Cadila
Healthcare, a fundamentally solid Indian pharma company on which a FII has recently put
out a `Buy report.
(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.)