Uncle Sam Plays Zee Spoilsport

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.

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.