However, the real strength of this rally will be tested once the NSE-Nifty approaches the 900 points level and the FIIs return after completing their X'Mas -- New Year celebrations. One factor that could help sustain the ongoing rally is the growing proximity of the Union Budget and the inevitable expectations that surround it. Yet, the rise has been so sharp that a technical correction appears inevitable. Traders could consider short selling Castrol if it touches the Rs 795 and cover it up at Rs 755.

Similarly, the TELCO counter, too, appears overheated and could be considered for short-selling if it touches the Rs 188-mark and coveredup at Rs 178. Bull operators could continue to focus on software scrips, with the prime pick meriting consideration at this stage being HCL-Infosys at Rs 285.

Another scrip worth considering for taking up a long position at around Rs 187 is Colgate-Palmolive. The dark horse bet of this week is Arvind Mills. Meanwhile, it would be worthwhile to remember that although the undertone is now distinctly bullish, the tide could turn yet again making it imperative to continuously book profits.

(The analyst heads Lotus Strategic Consultants, Mumbai)