The Hindu Business Line : Is the market looking for excuses to crash?

Jogin was studying about Renault-Nissan boss Carlos `the cost killer' Ghosn, who is said to have increased the value of his company by $10 billion. Dakshinamoorthy was analysing the impact of the latest tobacco ruling in the US. Sridevi was crunching numbers to see if fuel price hikes affected retail sales. But Khan remembered to summon the three for the weekly chat. Join in.

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Kay: Hi, DJS! Markets likely to decline.

Sri: Market breadth turned negative on Friday.

Jog: With the advance to decline ratio at 1:3.80.

Dax: Rumour about PM resignation sent

the market into tailspin!

Sri: Nifty now faces immediate resistance at 3,123.

Kay: On the downside, support existed around 3,015 level.

Jog: Friday ko it was at 3,075, as per my yaad!

Sri: Only silver lining is that FIIs were net buyers...

Dax: To the tune of Rs 1,136 crore from June onwards.

Kay: Volatile movement is likely in the coming days .

Sri: Market does a tango with the Government.

Dax: Which explains the continuing flip-flop.

Jog: Is the market looking for excuses to crash?

Sri: When some large-cap stocks are available...

Kay: At attractive prices, why risk buying mid-cap ones?

Jog: Last week ka numbers kis ke paas?

Dax: Zodiac Cloth and Glenmark earned 3% on July 3.

Kay: IVRCL managed to stay positive that day, right?

Sri: This week, watch out for agri-processors...

Jog: Such as Satnam Overseas and KRBL.

Kay: SAIL may be firm on expansion programme.

Dax: Sterlite Ind may show a firm undertone.

Sri: Owing to rise of copper and aluminium prices.

Kay: Tata Steel may stay in the limelight.

Dax: A prime takeover candidate for Arcelor Mittal?

Sri: IT results season might see Infy rule firm...

Jog: At least for the first few days of the trading week.

Dax: More than its Q1 number, outlook is keenly watched.

Kay: GHCL seems strong due to firm commodity prices.

Sri: Speculatives may covet ONGC. You know why?

Dax: Indications that crude may touch $90 a barrel!

Jog: Over the next 6 weeks. How sad!

Kay: Bank of Japan meets on July 13-14.

Sri: A quarter percentage point rise in interest rate...

Jog: Already digested. Other negatives can shake.

Kay: US stocks under pressure on rising labour costs.

Sri: Plus soaring energy prices and higher interest rates.

Jog: Heydays of profit margins over there. Any effect here?

Kay: Hmmm... IT? Predominantly dependent on US cos.

Sri: Political yo-yo spoils market mood. Not healthy!

Dax: Paper sector, kya vichaar?

Sri: Look for capex developments. Favourite for many...

Kay: Despite a clear slowdown in green-field expansion.

Jog: Capacity upgrades, because paper companies hope to

get higher realisations, at least in the next few years.

Sri: Exports up. Plus, domestic demand is set to increase.

Jog: Gujarat NRE Coke, any ideas?

Dax: Those who had bought FCGL Ind earlier are happy

because FCGL has come into the Guj NRE fold after merger.

Kay: Merger ratio was 1:1. Guj NRE is now set to do a bonus.

Sri: That should keep shareholders happy for some time.

Jog: Yet, the stock is moving a trifle slowly at this juncture.

Dax: Ajanta Pharma, KEI Ind have good fundamentals...

Jog: Though they have declined sharply on Friday.

Kay: India Cements managed to survive the Friday dip.

Sri: Brokers are bullish on this scrip.

Dax: MRO-TEK (target 100); Liberty Shoes (target 250).

Jog: For the long run?

Sri: Ready for Eveready? It has to recharge (its battery!)

Kay: It has been sliding recent times. Now sub-Rs 100.

Sri: Lost a clear Rs 40 and more since good times.

Dax: Company seems ready to diversify.

Kay: Hope it doesn't venture into too exotic sectors!

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Lee with inputs from Nat, Mad, Bad, The, Nil and Bij.

Blog at http://MarketChat.blogspot.com