The bullish trend has persisted and the Sensex closed at 3641.11, posting a gain of 25 points. The high for the market was 3676.76, compared to the previous high of 3629.

Even the low for the day was much higher at 3627.09 as compared to the previous score of 3553.68. What you need to note is that despite the strong performance, the Sensex closed just 2 points above opening. The high for the day could not be sustained.

This is likely to lead to emergence of profit booking on Tuesday's trading. Individually too, the following counters look ripe for profit booking: Bajaj Auto, BHEL, Colgate, GE Shipping, Glaxo, Ranbaxy Lab, Grasim, Gujarat Ambuja, HLL, HPCL, Indian Hotel, IDBI (book profit at peak), Nestle, Hindalco, Telco, IPCL and Tata Power (book profit at peak, or partly). You could hold on to the following scrips - ITC, Larsen & Toubro, SBI, Mahindra & Mahindra and MTNL. Some of these scrips have made a strident advance on Tuesday and therefore appear to be inviting profit booking.

But given their technical pattern and inherent strength on other counts, they have an equal chance of holding on to Tuesday's level. Of course, if the overall market is reacting, it will have its influence on these scrips as well.

On the other hand, there is an even chance that they will hold their ground and advance again further. If you are a conservative investor, you might as well book your profits.

ITC is evenly poised. The hold recommendation is based on the fact that this scrip is usually bullish even under weak market conditions. Again conservative traders can book part profit here.

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