The Sensex hit a century, almost, on Monday. It went up by a whopping 94 points to close at 4,170.22. Traders have been bold to take positions in select counters and push them beyond normal expectations. While the rise can tempt profit-booking on Tuesday, the market tide could continue to move northwards, despite potential profit-booking.The market opened with the Sensex at 4,130.92, which is actually an opening with a gap. The previous close was at 4,076.05 and the previous top 4,078.38. The market moved up to post a high of 4,184.37 by 1.20 p.m. Later, it dipped by 3.20 p.m. only to move up in the last one hour to finish at 4,170.22.
The market gain has come through select counters. SAIL posted a whopping 20.82 per cent gain to post a high of Rs 15 and close a little lower at Rs 14.80. The scrip went up with a gap. Volumes moved up to Rs 14 crore compared with Rs 6.45 crore on the previous day. Steel scrips appear to be moving up in anticipation of the new government tightening on dumping and also apossible increase in import tariff. Tata Steel, too, moved up to Rs 167.80. Has the market been seized with a frenzy is the question that should arise in the minds of investors. This is because, while everyone is happy with the market having moved up swiftly, fears would normally surface as to whether the rally would be sustained. An answer to this appears rather easy at the moment. Look at ACC for example. The scrip made only a modest gain, as it had already advanced steeply in the previous session. So some profit-booking is inevitable here. On the other hand, taking up Bajaj Auto by Rs 35 calls for a large dose of optimism. A closer interpretation is that operators do want to make hay while the sun shines. And Bajaj Auto is a good rocket to launch. But look again at HLL. It went up with volumes by 2.76 per cent. That is more of fundamental buying and signifies a confidant undertone. Or take ITC again. The scrip is reacting, when others are moving up. So operators are acting very selectively.
But a lookat Gujarat Ambuja should show you that the enthusiasm has caught all over. If that is the case, there is a good chance that a number of other scrips which did not move up very stridently on Monday could start doing it in the remaining part of the week. But of course, you must allow enough margin for the customary profit-booking on Tuesday. A word of caution. You are now riding on a tide which is building up. There will be more ups and downs than usual.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
