With the Government and the Opposition parties locked
in a Parliamentary logjam, the biggest casualty appears to be economic legislation and now
there is a growing worry that the Union Budget as it was presented may not be passed.
As we predicted last week, Alan
Greenspans Fed rate cut provided some respite to the bleeding Nasdaq and that in
turn has provided some breathing space at our bourses with the free fall of the IT
pivotals being halted, at least for now.
Traders could sense an opening here and bull
operators willing to take a punt could consider taking up long positions at the counters
of Satyam Computer at Rs.242 (square up at Rs.268) and Castrol at Rs.231 (square up at
Bear operators could consider taking up short
positions at the counters of Bajaj Auto at Rs.264 (cover up at Rs.247) and Silverline at
Rs. 90 (cover up at Rs.77).
The long-term portfolio pick of the week is
Visualsoft, whose profit warning prompted a battering to a price level where it offers
excellent investment value.
(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.)