Uptrend likely in Infosys, NIIT

Sanjiv Shankaran

THE average badla rate for the market was around 12.50 per cent, higher by about 2 percentage points compared to the previous week.

The aggregate badla turnover stood at Rs 2,481 crore, marginally higher than the previous week's turnover of Rs 2,432 crore.

Infosys Technologies was one top-rung technology stock that witnessed increased trader interest. The badla turnover increased significantly in relation to the previous session. NIIT also recorded increased interest.

However, the pattern of badla trading when studied in conjunction with the charts did not throw up clear signals for technology stocks, which, as always, topped in terms of turnover. But there does not seem to be a clear-cut medium-term trend at the moment.

For the next settlement, there may be a little uptrend in Infosys Technologies and NIIT, but indicators do not appear strong.

Among the other stocks where the pointers look interesting are: Arvind Mills, Bharat Petroleum, Cipla, Dr. Reddy's, Colgate, HDFC Bank, Hindustan Petroleum, Hindustan Lever, Gujarat Gas, TVS Suzuki and Madras Cement.

Arvind Mills and Bharat Petroleum show signs of displaying a firm trend over the medium term. At a superficial level, the interest in Arvind Mills is intriguing as the company's performance is poor. But the increased trader interest points to the possibility that a section of the market sees some significant price rise.

Cipla has seen a long uptrend. The price has appreciated by close to 50 per cent over the past two months. But in the immediate future there may a small correction. Dr. Reddy's, on the other hand, may see an uptrend.

Hindustan Lever, Colgate, Hindustan Petroleum and HDFC Bank may see a small price rise in the near term. That may be the case in TVS Suzuki too.

Madras Cement appears to be on an upswing. Interestingly, quite a few cement stocks appear set for a take-off as well. In the recent past most of the top-rung cement stocks have seen a little rally. But for the moment, Madras Cement looks most promising.