Pivotals do not appear promising

Sanjiv Shankaran

THE average badla rate for the market was around 11.5 per cent per annum, up by about 0.50 percentage points in relation to the previous week's badla rate.

The aggregate carry forward/badla turnover was Rs 2,250 crore, down by about Rs 184 crore compared to the previous week's turnover.

Infosys Technologies did not figure among the stocks that were up for the badla trading as the stock is the no-delivery category. In the last badla settlement, Infosys' turnover was Rs 173 crore; given the absence of the stock, the change in Saturday's badla turnover was not significant.

The pivotals, Infosys, Satyam, Hindustan Lever and Reliance, among others, do not look promising. While the possibility of a short spurt in the price of these stocks early next week exists, the undertone appears to be weak.

If the pivotals are not particularly strong, the market indices are likely to drift downwards for a while. Infosys, which has been in the no-delivery category for a time, has escaped the sharp slide in other technology stocks. At the moment, it may not be the best counter for investors who wish to play safe for the time being, because as the no-delivery period draws to a close, there may be sharp swings.

The other heavyweights in the new-economy stocks, such as Wipro, Zee Telefilms and Himachal Futuristic do not look as if they would show spectacular returns in the near-term.

Among the stocks that may provide moderate profit opportunities for investors willing to take long positions are ABB, Ballarpur Industries and Britannia. All the stocks have displayed a firm undertone over the last few days and the situation may continue for a while longer.

Among the other stocks that may see a few opportunities for investors willing to take a long position are TVS Suzuki, MTNL, Gujarat Gas and HCL Infosystems. Gujarat Gas recently announced a strong earnings growth for the quarter ended September 2000. The stock may see a short sharp upward movement next week.

In the case of HCL Infosystems and TVS Suzuki, a correction may be witnessed after a period of weak price trend. Both stocks may provide moderate returns over the course of the coming settlement.

The BSE Sensex moved in a narrow band during the course of the previous week. closing at 3,729 points on Friday, up by about 36 points over the previous weekend's close.

The week was marked by lacklustre market and a further decline in the rupee in relation to the US dollar. All in all, not the best of weeks for the equity market.