The FIIs continued to be sellers but it was the combined strength of the investing public and domestic institutions which kept up the sentiment.

During the week the market was steadily charting a bullish trend when unfounded fears of a war between India and Pakistan caused a major dent in the bullish sentiment.

Old timers in the market may recall that this is not the first time that these fears have been the cause of a short-term fall in the index value. Usually, such fears are short term in nature and the market is back on course after a couple of days.

As far as the war is concerned, one can be assured that nothing will happen except intermittent verbal skirmishes simply because neither India nor Pakistan can afford an armed conflict.

Last week, it was expected that that the marketwould gather strength during the week. This actually happened as the index touched a weekly high of 3,890 points before the index staged a short-term decline. Our view that the market will rise remains unchanged.

The patterns that have formed during the week support this view. On the weekly charts the current week's trading has formed a `doji'. This `doji' has been contained within the previous week's candle thus, forming a bullish `Harami cross' pattern. This pattern is relatively rare and is considered to be a very bullish one. On the daily charts, the last day's trading has formed a `spinning top'. This is a sign of indecision and at times this also acts as a reversal pattern. Also, the lows of the last two trading days are almost similar, thus forming a pattern called `tweezers bottom'. This is also a bullish pattern.

The indicators have also shown a tendency to flatten out. The ROC (Rate of Change not shown here) indicator has formed an inverse head-and-shoulder pattern. The MACD (Moving AveragesConvergence Divergence) has shown a tendency to flatten out. The indicators have not as yet flashed a reversal signal. But the price patterns on the charts are showing signs of bullishness.

Next week is going to be the pre-budget week and one can surely expect some fireworks to take place. If the charts are any indication of what the budget has in store then our guess is that the finance minister will have something very exciting for the market. We expect the market to gather strength in the forthcoming week and the index will rise to its first resistance level of around 4,130 points. Traders may choose to be on the long side of the market.

ICICI: May rise

Notice in the chart that the stock is currently poised on its rising trendline. On the long-term monthly charts (not shown here) the stock has formed an inverse head-and-shoulder pattern. The break-out point beyond the neckline is above Rs 115. Once this resistance level is overcome the stock could see a strong appreciation in price. Currently,the stock is in the no-delivery period on both the exchanges. Traders can also consider buying at the current price for a targeted price of Rs 115. One may buy at current levels. Keep a stop loss below Rs 95.

ITW Signode: Await breakout

This stock has also formed an inverse head-and-shoulder pattern. The breakout from the pattern has still not taken place. The breakout will be said to have taken place once the stock price manages to rise beyond Rs 84. Once the breakout takes place the stock can rise to a targeted level of Rs 125. From next week this stock will be in the no-delivery period on the BSE. One may buy on breakout. Keep a stop loss below Rs 75.

Fujitsu ICIM: Bullish

This stock has shown a breakout beyond the resistance level of Rs 50. The breakout has been accompanied by strong increase in volumes. Software and any computer-related stocks are on a roll and this stock has been a late entrant to the party. The MACD of the stock is in a buy mode. One may consider buying this stockat current levels. Keep a stop loss below Rs 50.

State Bank: Bullish

This stock is just above its very strong support level of Rs 253. The risk-reward ratio is very attractive. Traders may consider buying this stock at current levels for an upside target of around Rs 265. Keep a stop loss level below Rs 251.

Hindalco: Buy long

Just like the index, the stock has formed the `harami cross pattern'. Traders may buy long for an upside target of Rs 722. Keep a stop loss level below Rs 672.