A Perplexing State Of Affairs

The event everyone was waiting for with bated breaths -- the FOMC meeting to decide on the course of interest rates in the USA -- finally passed off as a non event. The Federal Reserve chairman Alan Greenspan did not throw up any unpleasant or unexpected surprises and left interest rates untouched at the FOMC meet held yesterday.

However, since this was on expected lines, there was no euphoria after the decision. The market can now breathe easy on this front at least till November when the next meet is due.

But the party spoiler yesterday was the rumour that more scrips would be added to the rolling settlement. This sent the bulls rushing to offload their long positions since the rolling sentiment, in its present structure, is considered to be a facility which curtails liquidity. The result was that the market closed distinctly weak.

 

Zee dazzles

Zee Telefilms was one of the few stocks to hold ground in an otherwise weak market where most stocks were losers. About a couple of lakh shares were bought by the Cleanson and Global brokerages. The firmness in the counter can be attributed more to the renewed interest of the One Man Army who has turned an aggressive bull in the counter.

Satyam loses ground

About one million shares of Satyam Computer Services were picked up yesterday by four broking houses put together. The scrip, however, failed to hold on to its gains after touching an intra day high of Rs 580, and closed substantially lower on nervous bull unloading and speculator unwinding.

The Global Tele-Systems stock too wilted in spite of three lakh shares being picked up by Uncle Jam yesterday. The scrip, in keeping with the rest of the momentum stocks, closed about four per cent lower.

Another stock which came under selling pressure and ended the day at the lower end of the circuit filter was DSQ Software. This stock could possibly qualify to enter the Guinness Book of World Records for the number of rumours it has generated on the subject of change in its management in the past year. It is a regular feature to see the stock frozen at either end of the circuit filter based on these rumours. Even die hard traders are wary to hold positions in this counter for fear of being caught on the wrong side.

ITC out of favour

Uncle Jam also sold four lakh shares of ITC for one of its clients. The stock seems to have lost its charm of yesteryears when it would be a market leader and in fact a barometer of market sentiment. These days there is hardly any retail interest left in the stock and volumes continue to be pathetic.

The King Kong brokerage also sold four lakh shares of BSES on behalf of one of its clients and another one million shares of ICICI.

Inconclusive picture

The market, and more specifically the technology stocks, were cruising along comfortably. But the break in momentum caused by the rumour mongering and misinterpretation of news on the issue of moving more stocks to the rolling settlement created a flutter, making the weaker bulls run for cover. This in turn has created an inconclusive picture for those who rely on technicals to a great extent. The more savvy traders, however, prefer to adopt a stock specific approach and would swear by their counters irrespective of the overall state of the market. This is the amazing aspect of the stock market which always provides opportunities for those who are willing to take the chance of seeking them. That is what separates the men from the boys and why some people always end up making money on balance.