After rumours of a Chinese currency devaluation shook the confidence of operators in Asian markets, notwithstanding the subsequent denial by the Chinese authorities most of the markets in Asia turned sluggish. Fears that such a devaluation now seem imminent could put the spokes on the ongoing rally at the Indian bourses.Furthermore, Finance Minister Yashwant Sinha's disclaimer on the possibility of yet another Chidambaram style `dream' Budget does not augur too well for the markets.
Hence, at the moment, it might be more prudent to keep booking profits and awaiting opportunities to re-enter at lower levels. The shares to consider for short-selling are Hindustan Lever at Rs 1810 (cover up at Rs 1780), Infosys Technologies at SRG Infotech at Rs 12.5 (cover up at Rs 9.5). Bull operators could consider taking up long positions at the counters of Digital Equipments at Rs 175 (square upat Rs 195) and Castrol at Rs 820 (square up at Rs 850).
The dark horse bet of this week is Vasishti Detergents, which seemsto have caught the fancy of market operators. Once again, the Nifty seems set for a downward correction and needless to say, it would be better to book profits now and re-enter once the correction sets in.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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