Last week we predicted that the downward slide in the markets is far from over.
There is now blood on the streets and it looks like the foreign institutional investors
seem to have pressed the panic button, going by their selling across the board.
However, it is at times like these that a contrarian approach could pay
off. Often, in the past too, the stock exchange indices have displayed amazing resilience
by bouncing back, when all seemed lost.
Hence, it is time to venture out and commence with selective purchases.
While traders with a bearish temperament can consider short positions at the counters of
Sterlite at Rs. 139 (cover up at Rs. 118) and HCL Infosystems at Rs. 264 (cover up at
Those with a bullish temperament, may consider taking up long positions
at the counters of Infosys Technologies at Rs. 6,342 (square up at Rs. 6,504) and Wipro at
Rs. 1,977 (square up at Rs. 2,104). The dark horse bet of the week is Aksh Optifibre while
the optimal strategy for this week remains start bargain hunting.
(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