The index had leaped up on December 21 from 2875 to 2921. This gap would have to be filled sometime or other. It would have been better, if a reaction had set in earlier to fill this gap. The index is now moving up without having undergone a consolidation.

On the other hand, the index has crossed an important resistance level at 2994. This is a downslope resistance level starting at 3526. With the crossing of this resistance, Sensex has gained strength to move up northwards. Long term investors should now seriouslyconsider investing in scrips of their choice.

On the downside their risk is now limited to 2957. Let us come to the short term view ahead. The daily stochastic indicator is in the overbought region. But that is no restrain for further push up.

The weakness in Glaxo continues to be real with its support far away at Rs 565. ACC is firm but Gujarat Ambuja clearly finds it difficult to move up. HLL has closed lower despite an impressive intra-day high. HPCL continues to be weak. Hindalco has firmed up but that is because it had slid from the high level it had seen very recently.

ICICI and IDBI is breaking upwards with good volumes. But SBI, despite a high intra day flare, has closed subdued, even though with a gap. Infosys is finding its feet after the reaction at the peak. In my view, it would be sensible to book profits in ITC and Castrol. If you like you may try to snatch another Rs 10-20 from today's closing levels. Reliance is breaking into new heights. With a technical support at Rs 108, Tisco couldstill find investors. Tata Chem too is strong on a similar note.