In terms of Japanese candlesticks, the Sensex has formed what is known as a Upgap White Lines. This is a bullish indicator based on three successive days. In the daily chart for Sensex the stochastic indicator has gone into the overbought zone. Butthe weekly chart shows that there is still more room for the index on the top. The index has the potential to march upwards further. Technically it has no resistance uptil 3035. But as it marches towards this target, there could always be waves of profit booking. This is healthy and will strengthen the undertone of the market.

The profit booking on Tuesday could well have been due to the closing of the trading week at the NSE. The new week opening on Wednesday would reinforce the undertone of the market.

The market breadth has been healthy. Despite the wave of profit booking, the advance volume went down only slightly from Rs 1060 crore to Rs 946 crore. The number of scrips on advance went down from 645 to 499. The volume in decline went up from Rs 8.55 crore to Rs 316 crore. The number of scrips on decline went up from 367 crore to 528 crore. These figures look healthy, compared to the extreme volatility witnessed in other days, where the figures literally reversed.

Sensex's passage through the 2963 to3012 region could be quite stormy, with intra-day and inter-day ups and downs. An evolving lack of momentum in HLL, Bajaj Auto and ITC could pull Sensex down intra-day on its upward march.