Market shows signs of firming up
K Seshadri
Jan 20: Trading on Tuesday was marked by profit booking, as was expected, and it removed just the top cream of the price rise. The market moves on to Wednesday with much of the strength intact.The market opened with the Sensex at 3487.86, some 7 points higher than the previous close of 3480.86. It gained 28 points to post a high of 3516. This should be considered robust because it exceeded the previous day's high of 3484.77. Readers would recall that on Monday the market had gained a hefty 98 points. Therefore if the market could move above the previous high, it shows the confidence of the operators. On the low side the market went down to 3448.97. It went below its opening level by 39 points. The market closed slightly higher at 3455.95. By virtue of this closing it lost 25 points day over the day. A loss of 25 points should be considered pretty modest compared to a hefty gain of 98 points the previous day. This pattern is repeated in most of the Sensex scrips. They opened close to previous closing,
but came down due to profit taking. But the decline in the price was just around a quarter of the previous day's gain. In the process they have closed higher than the previous day's opening. This is an improvement over the stabilising process that was underway earlier. Reliance lost 2.01 per cent, but it has a good support just Rs 2 below its closing. Therefore Reliance is unlikely to accelerate the Sensex fall. State Bank has the potential to lose some top flesh. On the other hand ITC, which lost 0.67 per cent, is likely to hold its ground. HLL lost 0.09 per cent, but looks vulnerable for Wednesday. Bajaj Auto on the other hand could firm up. BHEL has a firm undertone, but could nevertheless lose nominally. BSES has a resistance at Rs 174. HPCL is unlikely to give away its current price level. Mahindra & Mahindra, Tata Steel and SAIL also are on firmer footing.Wednesday is the opening of the new NSE week. The market has a good potential to firm up for the day before advancing again. The balance, however,
is in favour of the bulls.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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