The Hindu Business Line : The best persuasions to the contrary

Khan tabulated the impact of SBI strike. Jogin studied the latest export initiatives. Dakshinamoorthy wondered if we should tell China how to create a Bangalore there! But Sridevi reminded them all, "Time to chat!" Respond. Fast!

Sri: Hi, all! Investors are still buoyant, despite the big dip!

Kay: Friday saw bears dominating the trading session,

after a long time.

Dax: Thanks to the rumours on `SEBI action on 11 FIIs'.

Jog: Bear run in Nifty and Sensex was unexpected!

Dax: Though the market went for a toss, no top official

of the regulator came out to deny the rumours!

Sri: "Rumour doth double, like the voice and echo,"

says Warwick in King Henry IV.

Kay: After the market closed for the week, we heard the

Chief talking of SEBI probe.

Sri: There may be more to the event than just rumours.

Dax: Otherwise, it would have recovered before the close.

Sri: Some money might shift due to big IPOs.

Jog: Is it the beginning of the end of bull run?

Dax: Hope for recovery in some days of the week.

Jog: Chart patterns suggest the possibility of a weak trend.

Dax: Betting on mid-cap tech stocks and power sector.

Jog: Havells (target 675). Dalmia Cement (target 325).

Kay: Also, check Rolta. Some action also in Jet Airways.

Dax: Ashok Leyland has crept well past Rs 40. Things

turning better? Or, are some players pushing it higher?

Sri: Volumes are large and investors are upbeat.

Jog: RNRL, the new Reliance outfit, is a bit down.

Kay: But trading is brisk and peppy. Currently at Rs 32.

Sri: Potential winner in the medium term.

Dax: Reliance Energy good on charts, buy on correction .

Jog: Gains in Reliance Ind may be held till IPO closes.

Dax: Watching ITC. Reaching for the skies!

Kay: At Rs 205 or so, it has shot up in a matter of days.

Sri: Is a weakening now in the offing? One never knows!

Kay: 2 stock broking companies are doing IPOs right now.

Jog: Not too many brokers are listed entities. Stockbrokers

used to be averse to the idea.

Sri: Infosys fallen sharply despite bonus. Grab it!

Dax: IT stocks likely to be volatile ahead of Infosys'

guidance numbers.

Jog: One can lay hands on Tata Chemicals.

Kay: Uptrend to continue in auto/auto ancillary counters.

Sri: Launch of Platina by Bajaj Auto may spur the stock.

Kay: Yet another price hike likely to bolster Hind Zinc.

Jog: Aditya Birla Nuvo likely to gain as telecom play.

Dax: Tech counters to stay range-bound ahead of results.

Kay: Block deals happened in LML, Orchid and Tata Tea.

Dax: MFs sitting on huge cash mobilised thru NFOs.

Sri: But when are they going to invest?

Kay: Going by the daily statistics of SEBI, MFs are yet

to start big time buying. Perhaps, they'd, from this week.

Sri: Rules bar holding on to cash for more than 3 months.

Kay: At these peak levels, marketmen say any further

movement upwards would be `stock-specific'.

Jog: Sector-specific and frontline stock rally almost over.

Sri: At least 4 contra funds got launched in recent times...

Kay: To invest in stocks that have not moved up in

the current rally, but have the potential to give good returns.

Dax: Contra Funds of Chola and UTI, Fidelity's `Special

Situation Fund' and ING MF's `Against the Market'.

Kay: "More sinn'd against than sinning," says King Lear!

Jog: Except for oil and gas sector, most of the sectors -

sugar, cement, tea, metal, pharma, FMCG, banking and IT -

gained substantially in the rally.

Sri: So, it would be quite a task for fund managers to spot

the laggards that are `potential winners' from the crowd.

Dax: King Henry VIII speaks of `the best persuasions to

the contrary.' Take care!

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

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