In fact this underlying strength appears to have prompted a trigger on the upside on Wednesday. The index opened with a gap at 3074 and closed at 3110, posing a gain of 64 points. With this the index has distanced itself further from the risk of breaking down through the 3015 support level.

In fact the market burst into a bullish mood right at the beginning; Wednesday being the first day of the new NSE week helped, post the profit booking on Tuesday. The market ignored the negative signals emanating from RBI. The proximity of the new year appears to have encouraged punters to continue with selective accumulation.

Reliance Industries has lent good support to the market. The scrip is breaking through the resistance, the inverse headand shoulder pattern had posed. Earlier, it had tested the level of Rs 108-Rs 111 thrice on the low side. The next target could now be Rs 128.

State Bank too has done the same trick. It has broken out of a similar reverse head and shoulder patter, rising from a double bottom. With these two heavy weights set to support the market upmove the reaction on the Tata counter could perhaps be overcome.

ITC has made a huge surge and could react at this level or slightly ahead. On the other hand, HLL looks set for moving ahead northwards further. BSES making further advance is possible only because of the underlying market mood. Mahindra & Mahindra is digesting its recent rise and Larsen & Toubro is now earning its spurs. On the whole the market advance is likely to continue.