Owing to the price bands, pivotals hit the upper end of their circuit filters in the morning session itself, allowing a small hike in prices during the post-budget session.

Though bear operators did not get trapped, thanks to the market falling in the second session, they were caught unawares by the decision to keep the bands at 10 per cent only. Although BSE was in favour of extending the bands, NSE was against the idea.

A sharp upward rally of over 2.5 per cent in terms of index movement on Monday morning was largely contributed by certain key industry stocks like L&T, Tata Power, BPCL, LIC Housing Finance, Andhra Valley, Ballarpur Industries and Essar Steel. This caught the bears on the wrong foot.

Market sources said that since June 2 was the last day of the trading cycle on the NSE, the rigidity in termsof price filters could trap operators, reflecting in the exchange's positions. This fear was, however, reduced in the event of the market falling by an equal proportion in the second session. On Tuesday, stocks can only move up by 5 per cent on the NSE, considering the 25 per cent weekly circuit filter. Investors wanting to cash in on the benefits announced for the housing, infrastructure and infotech industries were in for a rude shock.

For example, Tata Power, which moved up by over 8 per cent to close at Rs 108 during the pre-budget session on the BSE, had place only for a 2 per cent price rise during the post-budget session given the fact that the 10 per cent filter was spread over the two sessions.

Similarly, L&T, which flared up by 10 per cent on the BSE during the pre-budget session to touch an intra-day high of Rs 281.20, closed slightly lower at Rs 279, again indicating that the stock could only appreciate by 1 per cent in the post-budget session. LIC Housing hit the upper end of the price bandin the pre-budget session.