Those who have made new commitments on Valentines Day will be cursing their luck today. Yesterday people were chasing stocks as if there is no tomorrow and sensex jumped by 800 odd points. As I wrote in my yesterday’s blog, this is nothing but gambling. US markets tanked yesterday and Indian markets will follow the big brother today.
Our markets will be volatile today and it is better to say ‘Goodbye’ to the new commitments made yesterday.
For seasoned traders Educomp provides new shorting opportunity for today. In the current market conditions, any trades should be squared up on the same day for a good overnight sleep.
It is interesting to watch Biocon’s chart and it is forming a good base at 400 levels. Fundamentally company looks good and it is planning to list one of its subsidiaries this year, thus unlocking the value. This will be a good investment pick. Investor’s can wait for an opportunity to buy at 300-350 levels on a bad day.
As far as IT stocks are concerned the future is still uncertain. TCS and Infosys are accepting the fact that there is slowdown in US. The IPO from L&T Infotech is postponed. Negative signals everywhere suggests that there is still more pain left in IT sector. The only hope for IT sector is the budget. I expect the Government to extend the tax holiday for IT companies. This will be a major trigger for all Indian export oriented IT companies. Contrarian investors can seriously start watching companies like TCS, Infosys, Satyam, Wipro, Tech Mahindra, KPIT Cummins, Sasken communications and some mid cap IT companies and can start building a good IT portfolio from 2 years perspective. DSP Merill Lynch technology.com is a good fund to invest at the current price of Rs 28(Growth option).
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