Financial Daily from THE HINDU group of publications
Monday, Dec 12, 2005
Columns - Chat
Bulls don't win bullfights, people do
Jogin watched anxiously fiery visuals of oil-depot blasts in London. Khan surfed the Web for international trade statistics. Dakshinamoorthy studied satellite images to check for new cyclones in the offing. But Sridevi remembered to summon them all for the weekly market chat. Link up!
Sri : Hi, all! What do the charts say?
Kay: Patterns suggest that the bullish trend could continue.
Dax: Markets were on a consolidation mode!
Jog: And ended at an all-time high on Friday.
Kay: Creating new history. :-)
Sri : Yet, this time around investors aren’t hysterical about the rise!
Jog: It’s boom-boom time, let’s accept.
Dax: “If you go into what I call a bubble boom, every bubble bursts,” warns Margaret Thatcher!
Kay: Nifty futures, which was trading at big discount to the spot…
Dax: By around 10 points during most part of the week…
Sri : Closed the gap at the end of Friday.
Kay: Shows that many traders hold bullish view.
Jog: “There is only one side of the market and it is not the bull side or the bear side, but the right side,” advises Jesse Livermore.
Sri : “Bulls do not win bull fights. People do,” reminds Norman R. Augustine!
Dax: Spot Nifty closed at 2,756.45 and Futures Nifty at 2,754.
Jog: One may see a mild resistance at 2,767, I suppose.
Kay: Mid-caps will rule higher than heavyweights.
Sri : Investing in performing companies will reap gains.
Dax: What about last Monday’s numbers?
Jog: Of the stocks we’d mentioned last week, Grind Norton earned a profit of 2.25 per cent on December 5. Phoenix Mill made a gain of 2 per cent, and Ador Welding was up 1.71 per cent last Monday. Bata India and Greaves Cotton gained 0.8 per cent, while Mah & Mah managed to stay positive. Gasp, gasp!
Sri : What about this week?
Kay: Wockhardt may show upside potential.
Dax: On news flow of new vaccine launch.
Jog: Varun Shipping may weaken, in my view.
Kay: “Ill blows the wind that profits nobody,” as in King Henry VI.
Sri : Because Petronet LNG has called for fresh tenders for a 25-year contract.
Dax: Varun Shipping, GDL for a longer timeframe?
Kay: Zee Telefilms may show a firm trend, I feel.
Jog: Because of the new tender norms of BCCI.
Dax: True, that will make Zee eligible to bid for rights.
Sri : Without any scope for ad hoc-ism in the decision process.
Kay: Numeric Power may show a firm undertone.
Dax: Since its technical collaborator may pick up a stake in the equity.
Sri : Markets are likely to take a favourable view of Nestlé’s move.
Jog: To exit unremunerative product lines, you mean?
Dax: “Shall profit thee and much enrich thy book,” I’d wish using a line from the Bard’s sonnet.
Sri : Be not “Snail-slow in profit,” as Shylock says!
Jog: Nor sleep by day “more than the wild-cat.”
Kay: Continued news flow of accretion to order book is likely to pep up L&T.
Sri : Parent company’s intention to invest more in India…
Jog: Likely to boost sentiment in MICO, right?
Dax: Buying Reliance in spot is fine?
Kay: As the demerger was okayed by Bombay HC.
Sri : Fertilisers are performing well.
Jog: GNFC and GSFC will have further run for their value.
Kay: Among banks, SBI, Karnataka Bank and KVB seem favoured.
Dax: “Look to it well and say you are well warn’d,” I’d caution.
Jog: With a line from King Henry VI, again. “Our hearts receive your warnings.”
Kay: Oh, All’s Well That Ends Well, that is! Bye.
Lee, with inputs from Nat, Mad, The and Sve.
Send in your views to: Chat@TheHindu.co.in.
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