Financial Daily from THE HINDU group of publications
Monday, Aug 01, 2005
Columns - Chat
There's no buy call for this week
Sridevi sat near the window watching Mumbai getting drenched, Khan tried to fit various logic theories to explain the market movements, and Dakshinamoorthy kept singing, "Rain, rain, go away. to Tamil Nadu!" But Jogin brought the chat meeting to order with a ping to their PCs.
Jog: Raining heavily but the market is ignoring it!
Kay: Stock prices have run-up very fast over the last month.
Sri : Now it's time for a sharp fall in stock prices.
Dax: Last Friday close had all the indications of a plunge in prices today!
Kay: Expect a collapse of around 300 points from present levels.
Sri : Ah, I'm swooning.! :-o
Jog: Wait, Sri! If FIIs' inflows continue, Kay's forecast may prove wrong!
Dax: But short-sellers or bears will rule August. In my humble opinion.
Sri : Chart patterns suggest continuation of the bullish trend.
Kay: Though market looked bullish overall on FII flows, decliners outnumbered advancers in all sectoral indices last Friday!
Dax: So, correction soon? That can be an opportunity for fresh purchases!
Sri : Banks, mid-cap, small-cap, PSU indices ended higher, but losers were more - in all indices on Friday. L&T and HLL look strong.
Kay: HLL numbers are likely to impress investors and lead to gain.
Jog: Sectors fancied recently were fertilisers, sugar and textiles.
Dax: Auto and banks joined the bandwagon following good monsoon.
Sri : But auto stocks may slow down this week after sharp run-up.
Kay: Street talk suggests action in Clutch Auto and Centurion Bank.
Dax: Also in KG Denim, Star Paper. Saw impressive earning numbers.
Jog: Of Suryalakshmi Cotton, Arvind Mills, Aarvee Denim, Andhra Sugars, and Gujarat Alkali? Yes, there can be up trend.
Sri : Less than notable growth could affect Shipping Corporation and Madras Cements.
Jog: Sizable addition to order book could see BHEL stock in the limelight.
Dax: Strangely, the Left's stance on disinvestment isn't rattling the market!
Kay: For traders, Himachal Futuristic appears attractive on the chart.
Sri : In low-priced stocks, expect action in Sampre Nutrition, Ispat Profiles, Gufic Biosciences, and Shivalik Metal.
Jog: I'm watching Glenmark. It's up to nearly Rs 320. Up from the depths!
Dax: Market is looking at fresh upside in this pharma counter.
Sri : IL&FS Investsmart is up ~ Rs 200 on the day of listing (Rs 125).
Kay: This just might be another Indiabulls, say investors who have been tracking financial services stocks.
Dax: With the equity culture setting in firmly, I see scope for appreciation.
Sri : Exide ka kya vichaar?
Jog: Strategic stake in ING Vysa Life will augur well for investors in Exide, I guess.
Kay: The company said that the deal is only an `investment', and one may think that this may not be for the long term.
Dax: Last week ka number-crunching koi?
Jog: Yes, I studied how the stocks moved last Monday. Malabar Building and Vans Info gained almost 10 per cent, and Adlabs Films...
Sri : It made a profit of about 8 per cent. Indraprasta was up 6 per cent!
Dax: Photoquip and Aegis Logis gained 5 per cent. NTPC earned 4.5.
Jog: Godrej Cons gained 3.5 per cent and ABB had to be contented with 2 per cent, along with NDTV. Indian Hotel made marginal gains.
Sri : Sunshine is delicious, rain is refreshing, wind braces us up, snow is exhilarating; there is really no such thing as bad weather, only different kinds of good weather, says John Ruskin!
Dax: "The best thing one can do when it's raining is to let it rain," advises Henry Wadsworth Longfellow!
Jog: On rain, I like this one from George Eliot: "It will never rain roses: when we want to have more roses we must plant more trees."
Kay: Call me wet behind the ears but my advice is: Go short on either individual stock options or futures.
Sri : True, there's possibility for you to make big money out of it.
Jog: Mid-cap and small-cap also to be under heavy selling, I fear.
Kay: This was seen last week also.
Dax: Just sell the bulk of what earned you good money in the short-term.
Sri : But hold on to stocks, where you feel that in the long-term the outlook is bright.
Kay: That's right. There's no buy call for this week. Buying is very risky at this moment. Bye to buy, shall I say?
Lee, with inputs from Vir, Nat, Mad, Ace, Nil, The and Sve.
Send in your views to: Chat@TheHindu.co.in.
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