The Hindu Business Line : Chance favours the prepared mind

If only markets were as simple to understand as the match that Sharapova won in Wimbledon... No, they aren't, which is why you may hang on to what Dakshinamoorthy, Sridevi, Jogin and Khan gossip.

Kay: Listen everybody, this is Budget week. Difficult to judge direction.

Sri: Oh la... tile! Best strategy: stay away. Those already invested can better exit with every rise, as for example from mid-cap stocks that went up last fortnight.

Jog: Keep an eye on Garware Poly, Alstom, Financial Tech. Fundamentals changed quietly. ITC and HLL may enter new valuation orbits thanks to Centre's `rural' initiatives.

Sri: Good feed! Finolex, Jain Irrigation and fertiliser stocks can see valuation ups with monsoon and Budget proposals. :-)

Dax: Also, Kirloskar Brothers and IVRCL Infrastructure. But I guess RBI guidelines on bank ownership are negative for private sector banks. Hit likely today!

Kay: Technically speaking, positive ending last week is more of a relief rally; near-term outlook continues to be bearish.

Jog: Praj Industries gained 35 per cent in one month! Better to exit?

Kay: Yes, and if the stock comes back to Rs 110-115 levels, it's the time to enter again.

Dax: Cipla may get boost from the combo anti-AIDS drug.

Jog: Other domestic generic players will also benefit, I think.

Dax: A simple strategy about companies likely to come up with results: Watch for the board meeting days; accumulate them a week before the meeting and exit just before the meeting day. JMO

Kay: Louis Pasteur's view that chance favours the prepared mind is apt for stock market. More so when indices are down but showing signs of upward movement in the near future.

Sri: Shanti Gears is giving 1:1 bonus and a stock split to Re 1 from Rs 10. Any ideas?

Kay: Stock around Rs 290. Better to buy it after Budget. Post bonus and stock split, it may go to Rs 15.

Dax: IFCI and Apollo Tyres may see some action during the week.

Sri: Because they're talking of merger of IFCI with IDBI?

Jog: Yes. And for Apollo Tyres it is time to look again at Modi Rubber. Sell these stocks if they move up on Monday. Budget may have some positive surprise for IFCI.

Sri: For lesser mortals, who find Budget fine-print tough, stay in cash, or bet on PSU bank stocks such as IDBI and IFCI.

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Lee, with inputs from Vir, Jay and Nat.

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