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Go short on Bajaj Auto, Colgate
Ashok Kumar
THE weakening of the rupee seems to have unnerved FIIs who, despite being cash-rich following their high voltage sales in the past few months, have chosen to remain along the sidelines and adopt a wait-and-watch approach. However, sooner rather than later, they will take the plunge and perhaps the trigger for the same could be the firming up of the rupee coupled with aggressive buying by domestic institutional investors. Again, we reiterate, once the uncertainty factor is discounted, domestic mutual funds and institutional investors will find value for money especially in the information-communication-entertainment sector that continues to be where all the action, and more importantly, the growth potential lies.Traders can thus strike while the iron is hot and those with a bullish temperament can consider long positions at the counters of Satyam Computer at Rs 2,378 (square up at Rs 2,598) and Hindustan Lever at Rs 237 (square up at Rs 254). Bear operators could consider taking up short positions at the counters of Bajaj Auto at Rs 367 (cover up at Rs 351) and Colgate at Rs 189 (cover up at Rs 172). The portfolio pick of this week is Nestle whose efforts are beginning to yield results again. Finally, the optimal strategy for this week is: start buying selectively (Ashok Kumar heads Lotus Strategic Consultants, Mumbai, e-il:ashokkumar@mantraonline.com) Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.
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