The verdict on Big Bull was not entirely unexpected, and there was not
much nervousness among players yesterday. However, now that the order is
out, it remains to be seen how the bourses react today. They could open
weak, but being the first day of settlement on the National Stock
Exchange (NSE), sentiment could firm up towards the close of trade.
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Uncle Sam in action
After maintaining a low profile over the past few days, Uncle Sam is
back in action. Just when players were talking of a new price orbit for
the Zee Telefilms scrip, Sam decided to play the spoilsport. Close to 2
lakh shares of Zee are reported to have been sold in the past couple of
trading sessions, with Sam figuring among the prominent sellers.
However, considering that the overall sentiment on Zee is still strong,
Sam is unlikely to run the risk of pressing further sales. Considering
Sam's track record at counters where he has a significant exposure, one
should not be surprised if he covers up his position in the next few
days.
Still going strong
The Reliance scrip displayed considerable strength in yesterday's
lacklustre trading. The latest to come out with a buy report on Reliance
is none other than Morgan Stanley Dean Witter. According to Morgan,
Reliance is trading at a discount to its global peers. This, according
to it, is unwarranted considering that the current valuations disregard
the upside to RIL's profit numbers on account of the consolidation of
Reliance Petroleum, the possibility of higher oil and gas production and
mid cycle chemical prices. According to the report, this is the first
chemical cycle in which RIL is participating as an integrated chemical
producer.
Meanwhile, Jeeyemmo, Mr Big, Skroedders, Mr Exit and a Middle East-based
fund are reported to have picked up about 28 lakh shares of the company
between them last Friday.
On the same day, 26.25 lakh shares of GE Shipping were also reported to
have been picked up by an institutional player.
After McDowell, the Reliance scrip has caught fancy with the Global
brokerage, which is aggressively recommending the stock to its clients.
Infy deals
The Infy scrip too has been under pressure over the last couple of
trading sessions on account of institutional selling pressure. An
institutional player, whose identity could not be confirmed, is believed
to have dumped close to 85,000 shares on Monday. However the scrip seems
to be receiving good technical support at around Rs 7,000 levels.
Silent One's picks
It was Silent Operator's day at the bourse yesterday. One of his
all-time favourites - Bajaj Auto - witnessed a smart turnaround with
significantly higher volumes. The stock has been hitting the lower end
of the price band as institutional players were disillusioned with the
company's future plans. The long position at this counter has jumped to
a record high of Rs 113 crore, which brings it to the league of stock
which have long oustanding position in excess of Rs 100 crore.
The stock's rise in an outstanding position suggests that the shares
sold by funds is going into weaker hands.
Now that Bajaj Auto is not has failed to perform, the Silent One is
hedging his position by taking fresh position at Escorts. The stock hit
a new 52-week high at both the exchanges yesterday. The buzz is that
Bajaj Auto's loss is Escorts' gain and the Silent One hopes to benefit
from Escorts' booming 100 cc bike sales.
Meanwhile, the Silent One is reported to have identified another small
stock to his portfolio. His new pick is Supreme Petro and the stock
yesterday hit the upper end of the price band at Rs 25.60. A total of
8.3 lakh shares changed hands yesterday.
Equity meet
Jardine Fleming, the Hong Kong based brokerage, has convened an Asia
equity conference in the US. Among the prominent participants include
Sterlite Industries, Gujarat Ambuja Cement and HDFC.