This sharp reaction is certainly cause for worry, as far as the technical health of the market is concerned. According to technical analysts, the Sensex had a good support at the 4,695 and 4,600 levels respectively. However, as a result of huge selling pressure, especially at the Sensex-based counters, the index has dipped below these two levels. This, according to them, is not a healthy sign.

The next technical support for the market is the 4,470 level, which is around 100 points away from the yesterday's market close. The Sensex needs to take a support around that level and in case that fails tohappen, the medium term investors who track the Sensex closely would have a reason to worry. As for the fundamentals, much would depend on the exit polls, which are to be announced on Tuesday. In the case of a positive result, the market may remain firm and strengthen later on expectations of a favourable election outcome, with a single part majority. However, a major rally is likely only after the election results are out as the FIIs are expected to make fresh purchases only after the political dust has settled and the scenario is crystal clear.

Titan Industries

After spending some time out in the marketing wilderness, Titan Industries, one of the few truly great Indian success stories appears to be back on track. And nowhere is this point more clearly made than in the fact that Titan has emerged the sixth largest "manufacturer brand" globally. A mere glance at some of the illustrious names like Casio, Citizen, Seiko, Swatch and Timex, ahead of Titan in the list reiterate the fact that Titan'stime has finally arrived, a sentiment echoed by the market and reflected in the market fancy for the scrip. In fact, the company's stock after languishing around the Rs 30-40 levels for a long time last year, has been piercing new highs in recent times. In fact, the scrip trading at Rs 108 is precariously close to its most recent 52-week high of Rs 115 pierced in July 1999. However, one need not look far for the reasons.

Investors might remember, the questionable premium brand positionings, diversifications into the jewellery business with long gestation periods, huge capital investments with a reducing capability to utilise these funds productively and the consequent high cost of funds, all of which had eroded Titan's profitability in the past.

But all that, it seems now, is history for the Indian watchmaker, as the company appears to have rediscovered its niche. Realising its blunder with the "elitist" positioning, the company has taken steps to restructure its product mix in a bid to develop massappeal for pushing the the brand to a wider target audience. A clear indication of which is the success of Titan's low priced offerings namely Sonata and Fastrack in the domestic markets. The development of an analog watch for the lower end of the spectrum is also a move along the same lines. All of which reveal, that learning from its mistakes, Titan has indeed come a full circle. A good investment for medium term.