The Hindu Business Line : It takes a lot of courage to show your dreams

Jogin went round a neighbourhood bull statue with a secret wish that he uttered for the umpteenth time. Sridevi emptied her lungs of all air to overfill a balloon and perform a burst test. Khan rewound in time as he sat reading a book on Emergency. And Dakshinamoorthy summoned everyone for the weekly chat on markets. Hop in!

Dax: Hey, how does a raging bull sound! Not huff-puff, anyway! :-)

Jog: Want to learn a new lingo because of the prevailing mood?

Kay: Market is still bullish as some short sellers are stuck up.

Sri : The rise on Friday was partially due to covering by short sellers.

Dax: For the first time, both Sensex and Nifty touched historic highs!

Jog: Markets rallied sharply belying the media talks of bearishness.

Kay: We thought some correction was due any moment last week.

Sri : That didn’t happen. Is it true that many stayed away or sold off?

Jog: Experienced traders and investors were sitting on the sidelines. JMO

Dax: Chart readers say that the market has moved into over-bought zone.

Kay: Hmm. They think a correction is imminent…

Sri : Though it may be preceded by an upward move in the Nifty.

Jog: Markets may remain firm till the expiry of derivative deals on 30th.

Kay: Expect Sensex to rise by another 200 this week. Then will come...

Dax: Selling? So, later in the week it would be good time to exit?

Sri : Right thinking. Mid-cap and small cap stocks will remain firm.

Kay: Expect steel stocks to do well. Outlook for the sector is strong.

Jog: Another stock to watch out is Encore Software.

Sri : Preferential offer by the company to some institutional investors?

Dax: Talks are that the placement would happen around Rs 70-100.

Jog: I’m thinking of taking position in Reliance Capital. It ran up 40%

Sri : Placement of shares to institutional investors likely around Rs 500.

Kay: But that will take some time, as the company has to hike the FII limit.

Jog: Several FIIs have shown interest in the company to pick up stake.

Sri : Sumitomo has wrestled into a vantage position in Swaraj Mazda.

Kay: Factor in pricing of deal with Punjab Tractors at Rs 400, likelihood of a new ownership structure and a new technical partner…

Dax: Yes, all this could see Swaraj Mazda stock retain its upward move.

Sri : Is a hefty dividend likely from Punjab Tractors? It is set to receive…

Jog: About Rs 60 cr from Sumitomo for selling part of its stake in Swaraj.

Kay: Don’t forget that the company is known for liberal dividend payment.

Dax: A dividend play in the offing? “If it were not for hopes...”

Jog: “...heart would break,” said JFK. Some rally left in the ITC counter.

Sri : Rising crude prices casts a shadow though ONGC will be fancied.

Jog: May we see ONGC - largest market cap stock - hitting Rs 1000?

Kay: Expect further upside in Bharat Forge as it has sewn up an acquisition in the US market whose payoffs could be attractive.

Dax: It’s buying Federal Forge with revenues of $60 million for $9 million!

Jog: I was checking what happened to some of the stocks that we discussed last week. Rel Cap gained almost 25 per cent on June 20.

Sri : Rel Enr made almost half of that. Reliance was up about 5 per cent.

Kay: IOL Broadband made 4, and so did IPCL. Satyam Comp gained almost 3.5, Spanco Tele was up 2 per cent, followed by Linc Pen.

Dax: Pantaloon and Ultramarine made a profit of less than a per cent.

Sri : Expect India Cements to rule firm; it posted profits after three years.

Kay: Murudeshwar Ceramics can also benefit from impressive earnings!

Jog: Markets likely to take a favourable view of Television Eighteen’s move to advance conversion of warrants into equity.

Dax: If the share transfer to promoter’s daughter is not treated as part of the 26 per cent allowed for FIIs/FDI, NDTV could be in for firm trend.

Sri : Yeah, I’m watching news-feed on this issue! Caution Left button!

Kay: What, Sri? Worried about their “strong message” on disinvestment?

Dax: Yaar, this can beat the market black and blue! Arey, bull bhagwan!

Jog: I see 7,500 as big as a football! Or, is it a ‘reliable’ illusion?

Sri : It takes a lot of courage to show your dreams to someone else!

Dax: Erma Bombeck’s! “In dreams begins responsibility,” is of W.B.Yeats.

Kay: “A mind enclosed in language is in prison,” said Simone Weil. With Japanese investors buying heavily, daijoubu desu yo means…

Dax: No problem! Ii kangae desu ne is great idea! “Spend not on hopes!”

Jog: And to agree say doukan desu. As with that George Herbert’s idea!

Sri : Dareka eigo o hanasemasuka? Is there someone here who speaks English, to alert everyone ah-boo-nigh? Look out!

Kay: “Cold hopes swarm like worms within our living clay,” warns Shelley!

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

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