The Hindu Business Line : Muster your wits, stand in your own defence

Khan tried analysing the modus operandi of the latest IPO scam, Dakshinamoorthy put in efforts to decipher WTO-speak, and Sridevi shed a silent tear for the victims of the unfortunate stampede down South. It was Jogin who stopped watching cricket to call his chums for the weekly chat. Attention!

Jog: Overall mood in the market is still upbeat.

Dax: True, chart patterns point to a continuation of bullish trend.

Kay: Rise of another 200-300 points possible before derivatives expire!

Sri : So one should be very careful while investing.

Dax: Much of the rise in the stock prices is liquidity-driven.

Jog: As long as the FIIs keep pumping in money, no problem!

Sri : Structure of many index heavyweights on the charts looks strong.

Kay: But be ready for the Sensex to fall to 8600-8800 levels.

Jog: Nifty finished last week higher and recorded a new closing peak.

Sri : The trend looks set for more bullish rally in the coming days.

Kay: Heard from market players that index may see some correction.

Dax: How I wish the year ended on a happy note in the bourses!

Sri : Two things: One, with the indices where they are, valuations are looking more stretched; comparing the 8,500 and 9,300 levels.

Jog: And two, with December coming to an end, FIIs take a holiday.

Kay: A temporary dampener. Soon, the results season will be upon us.

Dax: Hope Q3 results will be good! Wait till mid-Jan for more on this.

Sri : Mid-cap and small-cap stocks will do well in the next few months.

Kay: IT stocks are safer. 3i Infotech and Geometric Software…

Jog: Another, for addition, is Logix Micro System. Fidelity has taken more than 6 per cent stake in this; much of the purchase last week.

Dax: The stock trades at Rs 220. Can buy with long-term horizon.

Sri : You have the numbers of last week's performance?

Jog: Numeric Power gained almost 5 per cent last Monday. Karnataka Bank and L&T were up about half that! State Bank earned more than one per cent profit on Dec 12. Mico and Karur Vysya managed to end on a positive note, on the first day of last week.

Kay: Sugar is a sector worth watching. I fear global sugar scarcity!

Dax: Positive for companies. Best plays would be Dhampur Sugar, Balrampur Chinni Mills, and Mawana Sugar.

Sri : Good times for metal prices will continue in Q1 of next year.

Jog: Means, stocks of metal firms will do well. Hindustan Zinc?

Dax: It has raised zinc prices. A zing thing now! :-)

Kay: Zinc demand is rising 10-15 per cent annually as implementation of infrastructure projects has gathered pace. Driver for lead demand is automobile sales. Rising use of computers means a whopping appetite for UPS and inverters. All these use lead, you follow?

Dax: If planning to play on commodities bourses, then going short on gold could be a good ploy. Gold prices could dip to $470 levels.

Sri : HLL was in the headlines last week as it planned to bring its separate biz under one roof. Best one for investment.

Jog: With crude prices slip on warm weather forecast, wait for some time before entering ONGC stock.

Kay: Ranbaxy to take a tumble owing to adverse patent ruling in the US.

Sri : "Ready, with every nod, to tumble down," as in King Richard III.

Dax: Century Textiles showing some strong signs of a rally in charts.

Jog: Bharti Tele is currently under-performing the market. Didn't move up in tandem with the rest of the market over the last few sessions.

Sri : Set to draw a lot of attention in the days ahead. As to why it is so depressed, there is no immediate explanation.

Kay: Just one of those funny things that happen, say experts.

Jog: ITC is another large cap, like Bharti. Yet, the stock is buoyant.

Dax Price now hovering at Rs 140. Traded volumes are large.

Sri : The company is expected to do well on the results front.

Jog: Phoenix Mills was at Rs 30,000-plus till a few days ago.

Kay: A split later, price fell to Rs 700. But, picking up from even here!

Jog: More surprises in store. "Love doth approach disguised…"

Dax: Index approaches disguised! "Armed in arguments," says the Bard.

Sri : "You'll be surprised: Muster your wits; stand in your own defence."

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

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