Uptrend in Grasim may continue

Sanjiv Shankaran

THE average badla rate for the market was around 12.50 per cent, up by about 0.25 per cent over the last week's badla rate.

The aggregate badla/carry forward turnover was marginally higher at Rs 2,723 crore (Rs 2,651 crore).

Two developments that stand out at the end of the week are the huge foreign portfolio inflow and the moderate increase in market indices. Given the strong linkage between Foreign Institutional Investors (FIIs) net investment and market movement in the past, it should be no surprise that the BSE Sensex ended the week with a net gain of about 157 points at 4,194 points.

After the moderate jump in indices last week, a move powered by technology stocks such Infosys Technologies and Satyam Computers that displayed a firm trend, the indicators for the coming week are not clear.

To start with, technology stocks, where market interest is paramount, have displayed mixed signals. Badla turnover in Infosys Technologies and Satyam Computers have declined significantly. The share price chart does not present clear signals either. In the uncertainty that prevails, and in the absence of clear positive signals, investors may consider cutting exposures at top technology stock counters.

With technology stocks displaying uncertainty, the overall trend for the market does not look positive. In the week ahead the market indices may display weakness.

Among other stocks, that promise a bit, are Atlas Copco and Grasim. The uptrend in Grasim which started a couple of months ago shows no signs of ending. The stock looks good enough to produce higher returns for investors.

Atlas Copco has seen a marked uptrend in the recent past. The share price chart and badla interest in the counter suggest that the trend may continue for a while.

Among the other stocks that have seen handsome gains in the recent past, ITC and Larsen & Toubro, a spell of weakness may set in shortly. Investors may consider booking profits in the counters.