Financial Daily from THE HINDU group of publications
Monday, Oct 03, 2005
Columns - Chat
Value lies in the mind of the investors
Jogin spent the weekend recalculating the economy's growth rate. Dakshinamoorthy slept well, dreaming that Sakhalin oil will solve our fuel problems. Sridevi was spending her bull-run gains on Navaratri purchases. But Khan got them all to assemble for the market chat. Hop in!
Kay: Mood among the market players is very bad.
Sri : Ask anybody, they say, just move out of small cap and penny stocks.
Jog: So, stocks that were market's darling are villain within a week!
Dax: I think small caps and micro cap will continue to be slaughtered.
Kay: Keep away from them even if they have fallen by 50 per cent.
Jog: Practise patience. Sit on cash. Don't jump to buy shares on every fall.
Sri : For Sensex and Nifty, the trend will remain bullish.
Dax: After some fall in the early part of the week, I guess.
Jog: Keep watching how the stocks are mauled for one more week.
Kay: Chart patterns point to weakness. Quite a few index stocks are in the overbought zone and a correction may be upon us.
Sri : Last Thursday, interestingly, the Sensex lost around 100 points intra-day only to recover later at the closing (on the same day).
Jog: Short-sellers were squeezed. They took 'sell order' positions…
Dax: And never got profitable exit. This points to very bullish condition.
Kay: Take this sweet pill: Buy-and-hold attitude will pay tremendously.
Sri : I was crunching last week's numbers. Sanjivani earned almost 8 per cent last Monday, while Centurion gained about 7. Hind Motors and Indraprastha were up 5 and 4 per cent last week. Gains were in the 3 plus range for Sesa Goa, Spl Inds, HDFC, Infosys, IFCI, Bharti Tele, and Sujana Metal. State Bank and Tata Tea were up 2 per cent on September 26, while Mukta Arts, Indian Hotel and Elec Casting gained about 1 per cent. Gasp... gasp!
Kay: This hafta, shift to large cap. Best among them at the moment are HLL, Wipro and Colgate. A few technology stocks also look good.
Dax: Mahindra and Mahindra could rule firm, as the acquisition of a couple of auto engineering firms is imminent.
Jog: DCM Shriram Consolidated could sport a firm undertone, as the company has announced both a bonus and a stock split.
Sri : Cholamandalam Investment could see some weakness on the news of the company having dropped its plans for a preferential issue.
Dax: Hero Honda could be firm. It posted a smart 22% jump in Sep sales.
Kay: Some more SEBI orders are expected this week.
Sri : That could further upset the mood in the market. :-|
Jog: If anybody has shares of Anant Raj Industries and Karuna Cables…
Dax: Just sell them on Monday morning. Call it gut feeling!
Sri : See ITC. After the split, the deluge isn't happening!
Kay: But, as marketmen feel, lots waiting to happen! The stock, with its face value curtailed, is now available at roughly Rs 140.
Jog: Dena Bank is another low-priced bank stock among many whose prices have spiralled in recent times. Volumes seem decent...
Kay: Positive on the business front; that should reflect on its price.
Dax: What about Aztec Software? After a bout of quick ups and downs, the stock seems to be settling down at Rs 130 or so.
Kay: Some developments on the corporate front, soon enough!
Jog: Sentiment on Infosys movement positive. Long is advised.
Sri : Eveready was very active on the bourses as it sold a property to KTPL and it should immensely help its cash flows. Viewed bullish.
Kay: Tata Tele Maharashtra should stand to benefit from its partnership with TCS in deal over 5 years.
Dax: Chemfab Alkalies, at Rs 178, a good pick? Quarterly results Oct 4.
Sri : Same day Hotel Leela Venture's board will debate on the setting up of a new hotel. Short term for the stock looks strong at Rs 258.
Jog: Somebody asked me about Eastern Silk and Sanwaria Agro!
Dax: No comments, please. After IFSL Order by SEBI, I'm very cautious.
Kay: Beauty is in the eye of the beholder. Value, in the mind of investors.
Dax: Such stocks are at 1/10 their price 2 years back. Blame the mgt!
Jog: A friend SMS-ed me if she could hold on to Kalindee Rail!
Kay: Sharply up and down. Good prospects. Highly risky. Hold!
Sri : Investors not much clued about the market should sell half of their holding if their returns give more than 50% in 1-2 months.
Jog: How confusing, as usual! At least recover the investment, in short!
Kay: Never regret if the stock rises after you sold and made your profits!
Lee, with inputs from Vir, Nat, Mad, Nil, The and Sve.
Send in your views to: Chat@TheHindu.co.in.
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