The Sensex hit a new high on Thursday at 4448. However, the market seems to be hesitant to enter a bull phase. Several leading scrips lack the momentum to move up further, and are looking forward to a period of consolidation. The market opened strong with the Sensex at 4413, which was higher than the high of 4404 on Wednesday

The opening was with a gain of 9 points over the previous close. The Sensex moved up to a high of 4448 and shed 72 points on profit taking to close at 4378.

Some important features of the stock market need to be looked at. The heavy weight ITC is indicating a southward slip, however small that may be. Same is the case with SBI. In fact, the SBI scrip is waiting to break down through its support line. The scrip had been hugging that line for a long time now without being able to advance further.

The fragile condition of the market made some smart operators book profits in Colgate, which came down from Rs 346 to Rs 318, and Nestle. Although HLL looks weak, it should at least retain its current place. Gujarat Ambuja is headed for profit booking.

The other heavy weight, BHEL is down but not out, and could move up. Arvind has invited profit taking. Reliance gives a weak signal of a rise.BSES appears satiated. Bajaj Auto is resting on the support line. Even Glaxo is losing its steam and so is Tata Chem, Tisco and Hindalco. In overall, operators have turned hesitant in playing bull. Profit booking has surged again.

Under the circumstances, it would be sensible to book profits again. It may not be time yet for short selling though. On the other hand, I would strongly recommend long-term investors to book profit on SBI, Hindalco, ITC and Lever. IPCL should also invite profit booking though it is firm at this point and might make another attempt to move up. One can hang on to the long position on ICICI counter as well as IDBI. Early birds could also go on short selling on select counters like State Bank (it is yet to give visible signal) and Hindalco. The market is vulnerable right now.

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