30-Mar-2007 – Bulls and Bears equally poised – Markets directionless

Lackluster, is what you can say, the market was today. Trading on the opening day of a settlement was dull. Whether the bulls or bears, who is going to gain control of the market is a difficult question to answer even after the week is over. The bulls are not taking control and the bears seem to be losing interest. So the only way that is possible could be sideways. However, I am tempted to say that the market may touch 12300 levels on the Sensex based on the daily charts. On the contrary, the short term intraday charts point out Sensex may touch 13400 again.

The banking sector looks for another dip and a short trade can be taken in any of the major banks like SBI, ICICI Bank, HDFC Bank, and at every rise on these stocks.

Bharti, Reliance, Rel capital and Hind Lever are still favourites to go long for some more time. ONGC is also looking stronger by the day. SRF may be looked at for a buy call. Technology stocks are looking weak prompting for a short trade at every rise. Actually, this is the main cause for the Index to be moving in a lackluster way since some of these heavy weights on the Index are showing divergent directions, otherwise market would have come down heavily. Even now the downtrend has a slight edge over the other.

Since market may be expected to move sideways, scrip specific trades may be more profitable than Index trades, with a very stringent trailing stop loss levels on the particular stocks.

SRF may be looked at for a buy call.

Accounting For Investments

29-Mar-2007 - Breakout imminent in Hind Lever

The market was range bound through out the day and towards closing some of the Index majors pushed the market up. Looking at the closing and the intraday charts, the Sensex may go upto 13400 in the short run where it may face good resistance. The daily charts of the index are still not showing any positive strength as has been noted in these columns earlier.

Today, personal care products major, Hind Lever gave a breakout and looks like a sure winner and one can add this to the long calls already made like Reliance and Bharti on the Index scrips. The First target seems to be Rs.214 and second target seems to be in the region of Rs.230-235. One may be tempted to add SRF to this list.

Most of the Tech stocks and bank majors are showing weakness. One can look shorting Infosys and the three heavies of the baking sector viz., SBI, ICICI bank, HDFC bank. Another candidate for going short looks to be certain is Century textiles, if it closes below Rs.514 for the week.

Institute of Investment Accounting - Prasad's column

The short term call on the small and medium cap companies continues with the same list.

Accounting For Investments

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