With the commencement of the final countdown to the electoral results for the last general elections of the millennium, the markets have turned very volatile with every minor upswing leading to a sharp round of immediate profit-booking. It is now a trader's market and will remain so for around a week till the installation of the next government. We are thus placed in a situation where a right move could yield windfall gains, while a wrong move could cost dearly.Traders could contemplate taking up long positions at the counters of ITC at Rs 795 (square up at Rs 825) and Hindustan Lever at Rs 2520 (square up at Rs 2565). Short positions, albeit risky at the moment could be considered at the counters of Goodlass Nerolac at Rs 215 (cover up at Rs 185) and BPL at Rs 520 (cover up at Rs 490). The dark horse bet of this week is Tata Finance while portfolio investors could keep an eye on the counter of Pfizer.
A final word of caution - avoid overtrading during this week and await a clearer picture before taking up new positions.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.