With the Y2K-related fears being laid to rest, FII buying at select IT counters has commenced again and if the indices have displayed relative stagnancy it is primarily on account of the somewhat baffling drift in the share price of the index heavyweight Hindustan Lever. But it is qualitatively too good a scrip to remain at lower price levels for long and the revival, which is likely in the next fortnight or so, could well herald the next big rally at the bourses.Another reason for the slackening of interest in the secondary market is the spate of IT IPO's in the primary market that seemingly offer a cheap killing on listing. Given the marginal increase in trading volumes, there are a few trading opportunities that have arisen of late. Punters with a bullish temperament could consider taking up positions at the counters of HLL at Rs 2270 (square up at Rs 2315), BFL Software at Rs 670 (square up at Rs 725) and Digital Equipment AT Rs 651 (square up at Rs 686). Punters with a bearish temperament can consider going short at the counters of Telco at Rs 230 (cover up at Rs 216) and Reliance Industries at Rs 232 (cover up at Rs 217).
The portfolio pick of this week is East India Hotels whose share price has now dipped below the Rs 200 mark. The markets are steady at the moment, but the undercurrents of a rally are definitely being felt. So, bide your time, get invested in the best stocks, preferably from the more potent sectors and await the commencement of the party.
(Ashok Kumar heads Lotus Strategic Consultants, Mumbai, and can be contacted on e-mail at : ashokkumar@mantraonline.com)
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