The Indian markets are in a bounce-back mode although it still has to steer clear of
several technical barriers over the next few sessions, before it can be hailed as a rally.
Operators are increasing their long positions, seemingly on the calculation that the
mutual funds, which are reportedly sitting on cash, will enter the market in a big way
shortly. Here again, historical evidence suggests that pre-supposing anything in the
market-place often proves costly.
Trading opportunities, however, are still
there for the taking and traders with a bearish sentiment could consider short positions
at the counters of Infosys Technologies at Rs.7,541 (cover up at Rs.7,416) and Wipro at
Rs.2,628 (cover up at Rs.2,498).
Bull operators could consider taking up long
positions at the counters of Rhone-Poulenc at Rs.801 (square up at Rs.824) and Cadila
Healthcare at Rs.150 (square up at Rs.162). The dark horse pick of the week is IPCL. The
optimal strategy for this week would be to book partial profits.
(Ashok Kumar heads Lotus Strategic Consultants,
Mumbai. While due care has been taken to prepare this report, readers are advised to take
specific investment advice before taking any investment decisions.)