The crisis in Russia continued to deepen further and the US and European markets are still jittery. Given the current state of affairs, there are many who feel that the recovery on the Indian bourses is likely to be shortlived.

The finance minister made some suggestions regarding the Rs 5,000-crore disinvestment programme of the public sector undertaking (PSU) navratnas. He has asked the financial institutions to pick up portions of the disinvestment programme through a specially floated special purpose vehicle (SPV). The Rs 5,000-crore disinvestment programme can trace its birth to the days when Manmohan Singh was the finance minister. Several governments have changed since then. The market has swung like a pendulum by over 1,000points several times during this period. But the disinvestment process has not seen the light of the day. One wonders how long this process will continue to remain in a state of suspension and when the PSUs will actually receive the much needed funds.

Last week, we expected the market to show a rise. During the week the market touched a high of 3,144 points before a small selloff brought down values. This week the market has shown several pointers for further consolidation. The index showed a breakout beyond the level of 3,010 points, confirming a double bottom. Also, the index broke above the falling trendline (see chart) with a gap giving a second bullish signal. On the weekly charts (not shown here), the index has formed a white candle following previous week's `hammer'. This is also a bullish sign. The index does show a tendency to continue its rally to the targeted level or around 3,350 points.

Though the abovementioned level is achievable and we have reasons to believe it, the rise may not be assmooth in the next couple of sessions as the index could stage a minor decline to around 3,020 points before a rally starts again. This is because on Wednesday the index formed a pattern known as the `bearish counter-attack line'. This pattern can cause a small decline, but overall, the market should remain firm.

The indicators are also showing a rising trend. The daily MACD (moving averages convergence divergence) is in a buy mode as it is above its trigger line. It is just below its equilibrium level. The 14-day RSI [relative strength index (not shown here)] is rising and it has crossed its equilibrium. The movements of the indicators can be generally interpreted as bullish. Traders may look for buying opportunities at declines.

Thomas Cook: Buy at current levels

This stock has shown a protracted sideways movement since June, 1998. This sideways movement was in the form of an ascending triangle. The breakout from the triangle has taken place during the week accompanied by a good increase involumes. The MACD shows a positive divergence and it is in a buy mode. One may consider buying this stock at current levels for a targeted price of around Rs 750. Keep a stop loss below Rs 580.

IPCL: Medium-term buy

This is one of the most heavily battered stocks. At a time when it seems that no one wants to take a look at this one, how is it that there is a gradual increase in volumes? Nevertheless, there are subtle signs that the stock is bottoming out. Since the last four weeks the stock's volumes have risen. The price has penetrated the down sloping trendline. The 14-week RSI has shown a positive divergence. In the medium term the stock could rise to around Rs 75. One may consider buying this stock at current levels. Keep a stop loss below Rs 45.

Mahindra & Mahindra: Good buy

In the last couple of weeks the volumes in this stock have picked up quite a bit. The 14-week RSI shows a double bottom and it has started to rise from its oversold zone. The MACD (not shown here) has alsogiven a buy signal. One may consider buying this stock at current levels for a decent appreciation in price. Keep a stop loss below Rs 150.

MTNL: Sell short

The appearance of a `shooting star' just below the level of Rs 217 suggests brief weakness in the stock. Traders may sell short to take advantage of a small decline in the share price.

Tata Tea: Buy long

The appearance of a long white candle in this stock suggests bullishness. Traders may enter long. Keep a stop loss below Rs 278.