The Hindu Business Line : Too early seen unknown, and known too late

Sridevi was searching for details about Infy’s Kerala plan. Khan kept calling his friends and relatives who had returned from the Haj pilgrimage. Jogin was comparing the relative strengths of Tata and Fiat. And Dakshinamoorthy buzzed the chat button to get them all talk markets. Eavesdrop!

Dax: Current situation in the stock market is very complex.

Sri : This week, RIL stock goes ex without investment.

Jog: Will see firm up trend in the couple of days ahead of Jan 18?

Kay: Of interest will be the special one-hour trading on Wednesday.

Jog: Fall in RIL stock price after de-merger is still unknown to the market.

Dax: “Too early seen unknown, and known too late,” as Juliet says.

Sri : But there is grey market for Reliance Infocomm shares!

Jog: The Bard sings of ‘the grey cheeks of the east’.

Kay: Price is around Rs 200-225. So just wait and watch…

Dax: To know how much the stock will fall.

Jog: Discount of 25-28 points in Nifty Futures to the spot market?

Kay: True, that’s a big concern for the market.

Sri : If this discount is real, then expect a sharp fall in the index…

Dax: In the next few days? Huge discount in ONGC futures!

Kay: Around 2.5 per cent. Also a cause for concern in the market.

Sri : Mood doesn’t look too bullish. Markets showed weakness on Friday.

Kay: Not really good news for investors. :-|

Jog: But if those who have gone short on Nifty Futures…

Dax: If they come to cover their positions, expect sharp upside.

Sri : Chart patterns suggest that the near-term may be weak.

Jog: And a correction is likely, ahead of the resumption of upward trend.

Kay: This week would be dominated by quarterly results. Watch out.

Sri : I fear the market scene would be one of sharp volatility!

Dax: With a negative bias, I suppose. “Commodity, the bias of the world.”

Jog: A quote from King John! What about last week’s numbers?

Sri : On January 9, Nat Mineral, Intelvisions, Sanghi Ind, and Ind Bank Mer gained about 5 per cent. Nocil was up 4 per cent.

Dax: Neyveli Lignite earned a profit of about 1 per cent last Monday. Punj Lloyd, RPG Life Sci, and Andhra Bank stayed positive.

Kay: Jet Airways may face subdued trading ‘cos of fresh capital issues.

Sri : Indiabulls can show a firm undertone following court approval.

Kay: To build on the property acquired by the company in Bombay.

Jog: Gujarat NRE Coke is currently an intelligent play on FCGL Industries.

Dax: The company merging into Guj NRE Coke (now at Rs 101)?

Kay: Exchange ratio 1:1. Price arbitrage! FCGL is available at Rs 90.

Sri : Eveready is right now an under-performer? Stuck at Rs 100-110.

Jog: Fell from recent Rs 140-plus levels. Diversifying into mosquito coils.

Kay: The announcement isn’t helping the scrip yet.

Sri : Bharti is still underperforming? Despite trying to create value…

Dax: Through network expansion, and insurance JV with a foreign co.

Jog: Price is still at roughly Rs 335. Kyon!

Sri : Heard that Tayo Rolls and Ponni Erode are good for investments.

Kay: Tata Motors bought German automotive engineering firm.

Jog: That should reflect on the stocks later. It hiked car prices also.

Dax: When Simplex Infrastructure is doing very well on the bourses…

Jog: Simplex Castings is also not left behind.

Kay: Educomp Solutions was listed on Friday. Of 40 lakh shares offered in IPO, Reliance Mutual Fund bought 10 lakh shares.

Sri : Another 8 lakh shares (before IPO) with Enam Securities.

Jog: Expect some fireworks in the stock. If holding it, don’t sell.

Dax: One can take a token entry into it! Good pick in the long term.

Sri : Even Bartronics (listed on Thursday) is worth watching.

Dax: Expect Andhra Bank and BoB to rule firm for much of this week.

Jog: As capital offers are open. Decline in the post-offer period likely.

Sri : Bank counters look bearish; particularly HDFC Bank and Canara.

Kay: SBI too isn’t moving up; finds it tough to cross Rs 940 levels.

Dax: “We are tougher, brother,” as in The Winter’s Tale!

Sri : “Bears with glasses…men with flatterers.” Julius Caesar. Bye!

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

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