Market has strong bullish undertone
K Seshadri
The market has made a strong thrust on Monday, the opening day for the BSE week. The Sensex has gained 70 points or roughly 2 per cent. The gain is spread right across many scrips. The momentum is pretty strong. The unsure performance of the market in the recent past has imparted a note of caution into the psychology of the average and conservative investors.This has led to taking a cautious stand to book profits whenever possible, rather than being adventurous or aggressive. However, the market behaviour on Monday gives the impression that the market has indeed a strong bullish undertone. The tone has been strengthening from one session to another over the last week. The momentum seen on Monday can carry the Sensex right through to 3838 levels, if not still higher to 3947. If operators are refusing to book profits, it could only because they expect that the market has thto move up much higher. The conservative investor might as well join the band wagaon and let his profits run. What is worrying of
course is that once the profit booking starts, you would end up losing the top icing on the cream. However, it is worth taking the chance, if the Sensex is slated to move up much higher.Monday's buying indicate strong selective purchases in counters like BHEL, IPCL, Larsen &Toubro, Colgate, Tisco, Telco and quite a few others. This could well indicate that FIIs have entered the market again. The market sentiment could also have undergone a change on the political outlook. The BJP apparently gives the impression of gaining, and that means much to stock market. Let your profits run.
Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.
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