Misery seems to be piling on at the Indian bourses.
Just when it seemed that an exceptional budget would retrieve the market, a spate of
controversies ranging from taped conversations of the ex-BSE President, payment crisis at
the Kolkatta stock exchange and finally, the `tehelka’ expose has rocked the markets
violently. It now seems that the writing is on the wall. Perhaps, Greenspan and a Fed rate
cut in the US might provide the proverbial silver lining amidst all these dark clouds.
Yet, amidst these ruins, there are trading
opportunities and bull operators willing to take a punt could consider taking up long
positions at the counters of DSQ Software at Rs.119 (square up at Rs.138) and BSES at
Rs.162 (square up at Rs.177).
Bear operators could consider taking up short
positions at the counters of Mahindra & Mahindra at Rs.140 (cover up at Rs.127) and
Sterlite at Rs.119 (cover up at Rs.105).
The long term portfolio pick of the week is
Hughes Software, a fundamentally solid IT company of impeccable pedigree and with immense
potential.
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(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.)
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