FEBRUARY 1: The correlation between the Nasdaq and the Indian bourses, and more particularly, infotech pivotals is now more or less complete. However, while there is considerable nervousness all round, the undercurrent still remains positive. As a result, every rise is triggering nervous selling and thereafter, every slide is halted by buying at lower levels. This, in turn, has resulted into a directionless market, with no clear trend visible. Having said that, the market still appears overheated and a further slow but steady correction cannot be ruled out. The indecisiveness on the market front is good news though for punters who thrive in such conditions, making money on both fronts, going short and long. Traders with a bullish temperament could consider a long position at the counter of Hindustan Lever at Rs 2293 (square up at Rs 2359) and Bhel at Rs 181 (square up at Rs 199).
Traders with a bearish temperament could consider pressing short-sales at the counters of Reliance Industries at Rs 356 (cover up at Rs 33) and MTNL at Rs 283 (cover up at Rs 267). The dark horse pick of the week, albeit high-priced, is DSQ Software, a much sought after scrip these days, following rumours of the possibility of a sensational announcement in the near future.
Discerning long-term investors could take a closer look at the counter of BFL Software, which appears to be emerging stronger. Yet, the best course of action, even now would be to keep taking profits as you see it. After all, you never know when it could all vanish.
ashokkumar@mantraonline.com
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.