Revival in ITC possible

Sanjiv Shankaran

THE average badla rate was about 7.25 per cent per annum, in line with the average rate that prevailed last week.

The aggregate carry-forward/badla turnover was Rs. 1,940 crores, sharply lower by Rs. 518 crores (21 per cent) in relation to the previous badla session's turnover.

Most of the most liquid badla counters witnessed a drop in badla turnover, however, while the relative fall in turnover this week may have been exaggerated by the absence of a couple of liquid scrips, PentaMedia Graphics, for instance, that have been placed in the no-delivery category.

Among the scrips that displayed a positive trend was Hindustan Lever Ltd. In the recent past, Hindustan Lever initiated steps to consider a buyback of equity shares as well as a stock split. The company's badla turnover registered a significant increase, and this, when studied along with the moving average indicator, suggests that the scrip may be in line for a firm trend.

A few scrips showed signs of a bounce-back in the coming settlement after a weak trend. ITC was one of the scrips that displayed signs of a likely revival next week. The company is now trading close to its lowest price in the last 18 months.

The counter witnessed hectic activity in the badla session and the result was a sharp increase in carry-forward position. This indicates that the scrip may witness a firm trend early next week.

Among the other scrips that may witness a firm trend in the near future are Punjab Tractor, Wipro and India Cement. All the three scrips registered a weak trend in the recent past. The technical indicators such as the pattern of badla trading and moving averages suggest that there may be a firm trend in the near-term.

Other than these scrips, a few other scrips where there may be a moderate rise in share price in the near future are Britannia Industries, Great Eastern Shipping and HDFC.

The software stocks have seen considerable selling in the recent past, a factor which has dragged all the indices down. In the last settlement at BSE, the BSE Sensex closed at 4657 points, down by 515 points in relation to the previous week's close. The outlook for the next couple of settlements does not seem bright because of a weak undertone.