The Hindu Business Line : Witnessing correction after strong bull charge

Jogin was searching market chronicles to check if indices too responded to Richter scale. Khan sat glumly watching visuals of Hurricane Stan destroying a Mayan Indian village. Dakshinamoorthy kept plugging Q2 results in his spreadsheet. And Sridevi sounded the chat bell to get them around for market talk. Join their gappa!

Sri : Hi, all! No bull call, it seems. :-|

Kay: You're right. Overall mood in the market is bearish for this week.

Jog: Sensex was down by more than 200 points last week!

Dax: Results season has also started, don't forget.

Kay: Market trend to be decided by Infosys results, to some extent.

Sri : That's on October 11, right?

Jog: Yeah. In the past, the stock price has fallen after the results.

Dax: So it is better to sell the stock before that?

Kay: Avoid building fresh positions; that much I can tell you.

Sri : Upward revision of earnings guidance may be necessary...

Dax: For the stock to retain recent gains and provide momentum.

Jog: Chart patterns suggest Nifty could test crucial support level…

Kay: It may show some up-trend before starting on a corrective path.

Dax: Markets got into consolidation phase last week.

Sri : Witnessing correction after strong bull charge.

Dax: "Even so great men great losses should endure." Julius Caesar!

Kay: That's healthy for the market.

Jog: The view is still bullish though market ended negative on Friday.

Sri : Rise in US interest rates may prompt FIIs to pull out funds?

Kay: Expect a push for interest rates in the domestic market.

Dax: Not a big worry, as India is on the growth path.

Jog: True, FIIs would continue to park funds here despite rising rates.

Sri : Anybody studied last week's price movements?

Dax: I sat crunching the numbers. Kalindee gained almost 10 per cent on Oct 3, and Chemfab Alk was up 7.6 per cent.

Kay: Anant Raj Ind and DCM were up 5 per cent, while Sanwaria Agr and Aztec Soft made 4 plus last week.

Jog: In the 3 per cent range were Kalptaru and Eveready.

Dax: And in the 2 range, Mah & Mah, Wipro and Hind Lever.

Sri : Tata Teleser, Colgate Palm and TCS earned a profit of 1 per cent plus. Hero Honda and Hotel Leela stayed positive.

Jog: What about this week?

Dax: "Mountains may be removed with earthquakes," says the Bard!

Kay: ICICI Bank may rule weak till fund-raising plan's details emerge.

Sri : Expect Bharti Tele-Ventures to post gains…

Dax: On the back of record high in customer addition in September?

Kay: Accretion to order book may help Ion Exchange…

Jog: In what may be a volatile week.

Dax: "The different plague of each calamity," as in King John!

Sri : ACC and Bajaj Auto will announce their results this week.

Jog: Most likely the result may not be better than market expectation.

Dax: Stock of these companies may better be avoided this week. JMO

Kay: But look at small-cap IT companies…

Dax: The ones operating in niche segments!

Sri : Such as Nucleus Software, Kale Consultants and so on?

Jog: But stay away from small cap stock for the time being.

Kay: Hi, those holding it and still making profits!

Jog: Sell and enter into good large cap or mid-cap companies.

Dax: Engineers India for long term?

Sri : Don't expect anything great in the short-term.

Dax: "I am giddy; expectation whirls me round," from Troilus!

Kay: Another good stock to buy now is HLL.

Jog: Its September quarter results will be good!

Dax: Among mid-cap, GHCL and GSFC are nice for delivery.

Sri : Panyam Cements is planning stock split; board meets on Oct 13.

Kay: That should help the stock move!

Jog: Rasandik Engineering also proposes to split stock.

Sri : Follow-up these stocks' movement in bourses.

Dax: "To fast, to study, and to see no woman." Love's Labour's Lost!

Lee, with inputs from Vir, Nat, Mad, The and Sve.

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