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K Seshadri
The Sensex has continued its march upwards. The index gained 44 points to close at 3096. The stochastic indicator has now gone into the overbought region. The daily stochastic is now placed at 94.69. But judging by the pattern of previous price formations, the index can now see resistance at either 3163 or more likely at the 3255 level.
Even though the daily stochastic indicator has gone into the oversold region, the weekly indicators are nowhere near the overbought region.
There has been a general upsurge in most of the pivotals. After a long time, the pivotals got into an upstride led by HLL. HLL moved up by 2.12 per cent.
It could move up to Rs 1750. The weekly RSI has now given a buy signal for medium and long term investors. The heavy weight State Bank continued to move up and posted another 2.03 per cent gain. ITC got over the initial reaction and advanced by 2.36 per cent. The robustness of the market move was reflected in Telco moving up by 4.33 per cent and IPCL by 4.03 per cent. BSES couldtake off. But BHEL could react.
Glaxo is weak, as is Great Eastern Shipping. The market has a strong undertone. Yet it would be advisable to keep booking profit and re-entering.
Meanwhile, equities continued an upward march on buying support extended by foreign institutional investors. Marketmen said FIIs bought shares of tobacco giant ITC, Zee Telefilms and State Bank of India.
Domestic institutions showed considerable interest in the ITC counter, while mutual funds including the Unit Trust of India (UTI) sold key index-based pivotals at peak levels and booked a profit.
The BSE-100 index closed at 1374.45 points from the previous 1356.37 points, showing a net gain of 18.08 points.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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