February 28: The market opened the new BSE week on a positive note as it gained 67 points to close at 3478.40. While the market closed on a high note, yesterday's rise could well be misleading so far as taking a stand for the rest of the week.Yesterday, the market opened with the Sensex at 3426.98, higher by 9 points over Friday's close of 3417.30. The undertone for the day was firm as indicated by the day's high at 3479.20 (higher by 13 points) and low (again higher by 15 points). Even though the market gained 67 points at close, you need to take the following into consideration. On Friday, the market had closed 27 points down from its opening and on Monday, market opened close to that level. On Friday, the Sensex posted a high of 3466.28. Compared with that, the market's high for the day was just another 13 points. On the low side too, there was a gain of only 15 points.
For a Monday market, it was inevitable that there should be enthusiasm and new long positions. This was because the previous weeksaw that while the market could not advance strongly, it would not go down either. You had alternate bouts of high and lows in terms of opening and closing.
Looking over the price behaviour of several scrips and reading this along with the fact that the NSE closes on Tuesday, I think it will make ample sense to book your profits tomorrow at higher levels for the day. This is not saying that the market is readying to go down. That will be known only on Wednesday. But many scrips are exhibiting fatigue and unless the market sentiment gets boosted by a different perception, it is difficult to see market further moving up on Wednesday and further down the road. And, even if it does it will meet a trend channel resistance at 3565, not too far above today's level. And, again the firmness seen in the market today is only in select scrips like Glaxo, MTNL and IDBI. SBI has made an upmove, but its upmove will depend very much on some fundamental news. Technically, there is no priming.
Reliance is at the bottom andis only of long-term interest. Even ITC is finding it difficult to breach the top limits. It could well become a target for bears now at the high of the day.
Yes, Tata Power has moved up to Rs 110 as predicted in the trader's choice, and you might as well book profit here.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
