November 4: The Sensex on Tuesday made a gain of 15 points over the previous day. A silent process of resurrection is taking place on several counters. The approach is still very much marked with caution.

This does make sense. For over the next few days, either of the following will take place. Right now, scrips are posting higher bottoms and are often closing higher. The beginning of the new NSE week on Wednesday could give some more impetus to the process.

If this process continues, there would be small gains in the next few days. This is not small from the trader's point of view, whose game is mainly in large volumes. Whether this beginning with small gains build up to a micro-flare is difficult to predict at this moment.

But the important difference is the bottoms and lows are rising. So the risks seem limited. The market is ripe for going long.

It is only the quantum of gains that needs deliberation. Small gains are sure, especially if you ensure to enter at the lower levels rather than higher of the intra day band. If the market then runs into heavy buying, the gains could be indeed handsome. So either way you seem to be winning.pThe other alternate scenario is this. The slow gathering of strength can weaken. This has happened before. The market has travelled flat. This is a risky proposition. But a low entry will protect you and you can get out without much damage.

But if you consider both the alternatives, it would still make sense to make an entry now. But ensure that you do enter at the lower end of the price band, and not at higher levels. This is because while early birds have made an entry, the process of affirmation by other players has to gather further strength. Pull out your quotation papers for the last three days and examine the price band of your target scrip. You should get a good idea of choosing the right entry price.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.