Aug 17: The current level of the index is very crucial. Notice in the charts that the index is right at its rising trendline-2. The level of 4290 is also a very crucial support level. A break below this level could put the market in a bit of bother. If the Sensex slips below the next crucial level of 4100, the market could be in a serious trouble. The indicators are offering some bearish connotations. The moving averages convergence divergence (MACD) has given a sell signal. But, the index has yet to break below its rising trendline. If we are witnessing a final reversal in price, then the reversal has come from the price itself. The market action over the next couple of weeks should help to decide about the future course of market.

DSE index slips 3 per cent: Most blue chip shares plunged on DSE during the week following revival of nervous selling by speculators and FIs followed by withdrawal of FIIs. SEBI's decision to defer a decision on the carry-forward trading came as a shock to bull operators who had been building substantial positions in highly speculative counters and had to off-load their positions. Fears that some of the petroleum product prices might be hiked shortly was another factor behind the selling spree. A few brokers felt that the fall in stock prices was a technical correction as several counters were in the over-bought positions. The benchmark index, after opening higher at 945.77 points following a sharp rise in speculative counters, closed 3 per cent lower at 907.26.

Selling pressure on CSE: The Calcutta Stock Exchange came for a bear hug this week as the market witnessed persistent selling pressure which made marked inroads into recent gains. Operators reported that with the main players taking a pause, there was not only hesitancy in widening commitments but also a tendency to reduce holdings where possible. Sentiments were also influenced by the withdrawal of the Bill to regulate the insurance sector and renewed talk that the expected petroleum price hike may now come any day.

Boom in prices arrested on MSE: Last week's boom in prices was arrested and scrips reversed their direction on selling pressure, coupled with profit-taking during the week under review. Poor upcountry advices also affected the market sentiment. Reflecting the market trend, the MSE index, which closed on Monday at 4506.07, declined to 3450.09 mid-week and finished at 4461.95 on Thursday, showing a fall of 8.78 points over the previous week's close of 4470.72 points. Hectic activities were witnessed in Reliance, SBI, Satyam, ITC and Tisco counters. The volume of business was large and undertone easier.

Dow Jones plunges 200 points: A wave of selling pushed the Dow Jones Industrial Average down more than 200 points in the closing minutes of trading last Friday as skittish traders worried about inflation and interest rates. Near the close, the Dow was down 230.65 points at 7,711.38, a drop of 2.9 per cent. A fall of that level is second in points only to the record 508-point plunge of the October 19, 1987 crash. But the percentage drop is not near a record.

Technology issues boost Taipei bourse: Resumed buying interest in leading technology issues sent the Taiwan stock market rising 1.4 per cent Friday. The technical rebound was mainly driven by buyings of high-earnings IC plays such as Taiwan Semiconductor. The Taiwan Stock Exchange weighted price index rose 138.46 points to 9,770.80. The mainstream electricals chalked up the largest 2.3 per cent rally, trailed by a 1.4 per cent advance by textiles, foods, and plastic and chemical issues. Taiwan Semiconductor and semiconductor maker Macronix International surged by the daily permitted ceiling of seven percent, jumping $ 9.50 and $4 to $152and $67 respectively.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.