It's party time on the Indian bourses. With the BJP-led NDA alliance decimating the motley opposition crowd of Congressmen and the Leftists at the hustings, the markets have turned unmistakably bullish, as is evident from the price movements of the pivotals and other second-line shares. Barring the occasional hiccup, this party should last a while unless of course there are some surprises in the announcement of the Union cabinet.There is considerable excitement at the bourses as investors and traders alike--as also the foreign institutional investors (FIIs)--realise there is a lot of money to be made in the next few months. Traders could consider initiating long positions at the counters of Goodlass Nerolac at Rs 189 (square up at Rs 224), Fulford at Rs 464 (square up at Rs 499) and Bausch & Lomb at Rs 114 (square up at Rs 137).
Short positions, albeit highly risk-prone in such a bull market, could be considered at the counter of HDFC at Rs 324 (cover up at Rs 299). The dark horse bet of the week is Canfin Homes, which is tipped to double from its present price level of Rs 17 in the short term. The portfolio pick of this week is Castrol, whose share price after a rough run on account of fund selling is showing signs of revival. Being a blue-chip, the medium-to-long term returns from this scrip are likely to be rewarding. Finally, a word of caution. Book profits at triggered levels, as an inevitable correction could well be round the corner before the next upswing commences.
The author heads Lotus Strategic Consultants, Mumbai, and can be contacted on e-mail at: ashokkumar@mantraonline.com
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.