The Hindu Business Line : Cash in hand is better than two stocks

Jogin was trying to ration over a whole week the few onions in his kitchen. Khan kept studying the contours of the US-India deals waiting to be signed. Dakshinamoorthy busily analysed the annual reports of IT companies. But Sridevi SMS-ed them all a four-letter word: CHAT. Join 'em!

** Sri : Hi, all! Overall mood in the market is still not upbeat.

Jog: Sensex fell over 1.50 per cent last week! A relief rally on Friday.

Kay: That recovery does not look very convincing. :-|

Sri : It could be like a dead cat bouncing back!

Dax: The rise was perhaps due to expiry of derivatives this week.

Kay: Hmm… just before the expiry, stock prices have remained firm.

Sri : So fresh positions should be avoided at the moment?

Dax: It is better to take position when the situation is clear.

Kay: Chart patterns indicate a continuation of recovery in the near term.

Jog: Today, I expect equity values to shore up.

Sri : But how long that will sustain may be the moot point.

Kay: PC has said that FIIs are here to stay and rupee is still strong.

Dax: That statement should comfort those who bought at 8,800 levels.

Jog: I hope the rally is not halted by any negative news this week.

Sri : Last Monday, among the stocks that we'd discussed, Bajaj Auto gained about 6 per cent. Gateway Dist earned about 4 per cent. State Bank was up about 1.5 per cent, while Reliance, Guj Amb Cem and ACC made about one per cent profits.

Dax: What about this week? Some buying can be done in IDFC?

Sri : Guj State Petronet is coming with IPO and IDFC has a stake in it.

Jog: Some value unlocking could happen.

Dax: By this time most of the investors have sold off much of their positions. Many are sitting on cash! There are some good mid-cap stocks available at good prices… But one should not enter this week!

Sri : Look at Mawana Sugar, Crest Animation, and Astra Microwave.

Jog: Do not build the positions right now. Wait for some more time.

Kay: Buy them after they rise some more or wait for further fall.

Dax: Steal a look at steel stock, like SAIL and Jindal Steel.

Kay: My strict message for this week (till Thursday): Avoid fresh position.

Sri : Further fall can happen?

Jog: Wait for next Monday for a clearer picture.

Kay: Cash in hand is better than two stocks in your portfolio right now!

Sri : Credit Policy may be a non-event for finance sector stocks.

Dax: In a big week for earnings, upside likely in HLL. Surprises +ve.

Jog: Other bigwigs such as Reliance, ITC, and the oil sector companies may not find any significant price action linked to earnings.

Sri : One can pick up ACC and ITC at current levels? Likely reversal?

Jog: ITC has become a test case of sorts for intra-day specialists.

Kay: The counter, after the recent stock-split, was down to sub-Rs 120 and closed at Rs 121 on the last trading day. This will continue to draw attention in the days ahead.

Dax: For delivery, Gateway Distri, KLG Systel and JK Cem seem good.

Kay: Small private sector banks such as KVB may find value-buying.

Sri : Cement stocks may continue to languish due to indifferent earnings numbers for a traditionally weak quarter.

Jog: Apollo Hospital closed on Friday at Rs 394. Recently, at Rs 415.

Kay: Quick trading opportunities, say marketmen, if you ask around!

Sri : Apollo's plans to expand - by starting and managing new hospitals?

Dax: Do you know that Gillette declined to a recent low of about Rs 660?

Jog: The counter was in the Rs 720-740 range till the other day!

Kay: May yet stage a comeback, it is believed.

Sri : Market is waiting for long to hear about P&G's takeover of Gillette.

Dax: Never invest in anything that eats or needs painting, Billy Rose says.

Sri : "Why not invest your assets in the companies you really like?"