Yet again, remember what we said last week.The sharpness of this rally which saw technical barriers being comfortably breached suggests that the undercurrent is very strong. Yet, a couple of bad days running at the Nasdaq just might set the cat among the pigeons once again and the reversal could again be sharp and swift. That is exactly what happened during the last settlement. With Greenspan again looming large over the Nasdaq, its spin-off effect on the Indian bourses cannot be underestimated. An interest rate hike could fuel a full-fledged correction that was arrested last week by operators and traders who supported the market at lower levels. But, concentrated FII selling could simply wipe them out and precipitate a sharp free fall. Traders can, of course, take advantage of the likely confusion and those with a bearish temperament can consider short positions at the counters of VSNL at Rs 1,328 (cover up at Rs 1,264), Reliance Industries at Rs 349 (cover up at Rs 323) and Zee Telefilms at Rs 485 (cover up at Rs 451).
Bull operators could consider taking up a long position at the counter of Visualsoft at Rs 6,697 (square up at Rs 6,786). Investors with a long-term perspective can consider exposure at the counter of Thomas Cook as price declines. The optimal strategy this week would be keep booking partial profits.
ashokkumar@mantraonline.com
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