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Fresh settlement at NSE likely to see market bounce back
K Seshadri
The slide of the Sensex has been arrested. The index gained 36 points to close at 3431.72. The beginning of the new NSE cycle on Wednesday could aid the process of recovery. The market opened 32 points higher at 3427.15, and moved up by a further 52 points to post a high of 3479.95. This, however, is lower than the previous high of 3482.98. The day's low at 3417.05 was above the previous low by 23 points. The market closed at 3431.72.The recovery of the Sensex could have well come about by bears covering up their short sales. The closing of the trading week at NSE could also have aided the squaring up of oversold positions. Several leading scrips opened higher than the previous close and moved up to post a good jump for the intra day. The close was higher, than the opening too. This shows good recovery. Falling in this category are scrips like BHEL, BSES, Colgate, GE Shipping, and Grasim. Gujarat Ambuja continues to be weak. Bajaj Auto failed to make any significant gain. HLL has moved down further with
high volumes; the stochastics indicator is yet to signal a reversal of the trend. HPCL is showing good signs of recovery even though on small volumes. Hindalco has stopped sliding further, but continues to be weak. ICICI has recovered price wise, but the technical pattern indicates that it could continue at the current level for some more sessions, unless there is a volume pick up. The volume was pretty low here. IDBI continues to be weak with high volumes. Some one could be unloading stock. Indian Hotel, IPCL, Mahindra & Mahindra, MTNL and ITC are recovering with a firm note. Reliance and SBI are gaining, but may take some more time to gather momentum.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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