Mumbai, July 7: The long-awaited technical correction saw the BSE-30 Index step below the crucial psychological barrier of 4,300 points to close at 4,291.45 recording a net loss of 32.37 points on Monday.

The trading session during the day was marked by wild and volatile fluctuations with the Sensex jumping by over 100 points from 4,391.01 to 4,289.49 points during intra-day session.

According to technical analysts, 4,390 level has a weak resistance level and calls for a necessary correction in view of profit booking. However, they maintain that the index is likely to further fall back to 4,250 levels where active institutional participation would provide the base for a final bull run. "Gains made during the early phases of the trading session fizzled at the end with operators unloading huge chunks of heavy weight stocks," said a BSE broker.

The news of the disinvestment though wholeheartedly welcomed by the fund managers but there were negative price movement in some counters like MTNL, GAIL and SAIL. This could be explained as follows: "Disinvesment would bring in more liquidity at these counter, hence, speculators were seen making attempts to slash down the prices of the PSU's shortlisted for the disinvestment," said a dealer at an FII brokerage firm.

MTNL attracted a circuit filter at Rs 287 on the BSE where the scrip witnessed continous selling pressure, and the share price was below the 10 per cent intra day mark. On the NSE, the stock dipped by 6.99 per cent to close at Rs 297.45.

Similarly, Gas Authority of India was locked at Rs 150.25 due to continuous price erosion on excess supply. The share price dipped by 9.4 per cent over its previous day's close of Rs 167.25.

According to market sources, same was applicable at the VSNL counter also, where FII bids for sale could not be matched by fresh offerings. VSNL closed at Rs 1,100 with a net volume of 200 shares only. Liquidation of long bought positions, saw share prices of Indo Gulf, India Cement, Indian Aluminium, Indian Hotel, Crompton Greaves and ICICI fall over 3-5 per cent on an average.

Sterlite Industries recorded a loss of 9.92 per cent to close at Rs 238.25 against its previous day's close of Rs 264.50.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.