The Hindu Business Line : Markets seldom peak in December

Khan was trying to calculate the cost of funds locked up in pending M&A deals. Dakshinamoorthy was reading a report on the economics of nuclear power. Sridevi was looking up the profiles of Nasdaq 100 constituents... Till Jogin messaged them, `bb' - for bourse baatein. Join the chat!

* * *

Jog: Hi! Markets are losing steam.

Kay: Dec is traditionally a good month for the stocks.

Sri: Markets seldom peak in Dec. Many long-term peaks...

Dax: Were in the first quarter of the year. Time to go on a year-end holiday?

Kay: The crack on Friday has left the market poised delicately.

Sri: Further weakness could also lead to the Sensex piercing 13,000...

Jog: On the downside? Booking profits, prudent!

Dax: Yes, at least on a part of the portfolio.

Kay: Fear of correction preventing investors going flat out to buy in the market.

Jog: Even if a correction is round the corner, it's going to be a minor hindrance!

Sri: Nifty turned weak. Downtrend may continue...

Jog: Support at 3,905. FIIs bought in cash...

Dax: And sold in derivatives for hedging purpose.

Reason for current weakness.

Kay: Last week's numbers?

Sri: Here: Garware Off was up 5% on Dec 4. Tata Motors and Ipca Lab gained more than 4%, while NTPC earned a profit of half that, last Monday.

Hindalco, Maruti Udyog, ITC, United Phos, Ranbaxy Lab and Alstom Power ended that day on a +ve note.

Jog: The passage of the Indo-US nuclear bill could bring good tidings.

Dax: To Punj Lloyd, Rolta and BHEL?

Sri: The large Cairn Energy IPO will suck some liquidity out of the system.

Kay: Tide Water Oil could see strength! Sarkar has decided not to sell...

Jog: The stake it owns in the company to ONGC!

Sri: Marathon Nextgen could see some action. The scrip has been moved...

Jog: Into rolling settlement from trade-for-trade.

Chart pick for the week...

Kay: Asahi India. Wildcards for the week are Karuturi and Litaka Pharma.

Dax: Watching for buy: IVRCL, GMR, Simplex Infra.

Jog: Big purchase from an MF in Rane Holdings...

Kay: Should help the stock in the medium term!

Dax: KVB, DCM Shriram Con Very active last week!

Sri: But buying on declines is better. Tulip IT waiting for an upward jump.

Kay: Away from IT, FCI OEN and Samtel Color worth looking at.

Dax: Polaris? Heightened activity. Target 175.

Sri: More steam left in Rajesh Exports.

Brokers' target: 330.

Jog: Ranbaxy may be down somewhat but it is definitely not out. Recent performance not passing through a great phase.

Dax: Yet, a heavyweight stock. Fairly good volumes.

Kay: Follow the classic wait-and-watch strategy here.

Sri: What about Balrampur Chini? Bobs up and down fairly regularly.

Jog: The sugar counter does not go much below Rs 82-84.

Kay: Then springs back to Rs 90-plus.

Will the trend continue?

Jog: Bilt has been low-key of late.

Premier place in `paper' space.

Sri: Stayed well below Rs 125-130 in recent times.

Dax: Not showing any major signs to move ahead.

Sri: Some sections are probably accumulating it?

Kay: Though many believe that property stocks are over-priced...

Jog: Check out Parsvnath Dev and Peninsula Land.

Dax: Ensure you end up making money. Take care!

* * *

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

Blog at http://MarketChat.blogspot.com