For the NSE trading cycle week beginning January 11, 2000 it was predicted that the market
is on slippery ground. This point has been driven home by the developments in the past one
week. In fact, had Hindustan Lever not rallied sharply, while infotech stocks continued to
tumble like nine pins around it, the indices would have reflected a much clearer 'as-is'
picture of the situation at the bourses.
However, the cut in the PPF rate, though debatable, will definitely
spur market sentiment, sooner rather than later. In fact, once the infotech pivotals are
driven down to more realistic levels, it might not be surprising to witness a fresh surge
in demand at these counters later in the month.
with a bullish temperament can consider taking up long positions at the counters of
Infosys Technologies at Rs.11,625 (square up at Rs. 12,490) and HCL Technologies at
Rs.1718 (square up at Rs.1796). Short positions could be considered at the counters of
Sterlite at Rs.507 (cover up at Rs.471) and Hindalco at Rs.929 (cover up at Rs.901).
A long term commitment could be considered
by discerning investors at the counter of a highly
efficient PSU, Container Corporation, while the dark horse bet of this week is Tata
Telecom. In the meanwhile, those who have booked profits at higher levels since the past
four weeks can now be seated on the fence and await an opportune moment to re-enter at
(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.)