As predicted, much of the euphoria over the tabling of the insurance and the patents bill proved unfounded as the political class in India proved yet again that they are not above one-upsmanship even on matters of national importance. Consequently, the rally that seemed to be materialising has more or less fizzled out and one may now witness a cooling off of share prices, especially at those counters which had witnessed hectic activity over the past couple of weeks. With this, a new dimension seems to have been added to the problem of political uncertainty that was dogging the Indian bourses.Unless this stalemate can be resolved soon, it's impact on the bourses will be even more adverse than that of the political uncertainty that has been dogging it since the last couple of years. If such a scenario prevails, it will not be long before the bear cartel once again assumes charge of the market and sends share prices hurtling downwards.
Given such a scenario, short-selling could be considered at the countersof Hindustan Lever at Rs 1705, Castrol at Rs 675, Reliance Industries at Rs 122 and ACC at Rs 885. Long positions, albeit risky at the moment, could be considered at the counters of NIIT at Rs 1475 and Satyam Computers at Rs 555.
Discerning long-term investors could use any forthcoming impasse in the market to pouch fundamentally solid scrips. For starters, they could take a look at Reckitt & Coleman at the higher-end and Punjab Anand Lamps at the lower-end.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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