As mentioned in this column yesterday, there are no intermediate barriers to the index sailing up further to 3250. The stochastic indicator on the daily index chart is an overbought zone. But it is subdued due to the fact that the index went through a moderation in the earlier four sessions. That the market operators have strong confidence in the upsurge is indicated by HLL rising by over Rs 100. The same sentiment was seen in the BHEL counter.

Interestingly, this stock had shown a technical weakness earlier. Despite that, the stock wentup by around Rs 20 accompanied by huge volumes. This behaviour is tantamount to high speculative fervour. No information is available to explain this abrupt rise. Look at the rise in Ranbaxy. These happenings indicate that much money is flowing into the stock market. Stock prices have been attractive, therefore, punters have no problem in taking positions.If you apply the same logic to MTNL, Larsen & Toubro, Mahindra and Mahindra and several others you will notice that these scrips have much way to go up northwards, considering the current price levels. The drivers are two-fold. First, stocks are underpriced. Next, operators are building in the potential for growth in the likely event of an economic recovery. But with ITC, BHEL and HLL exhasuting their immediate potential, the Sensex would have to look for drive elsewhere. The other stocks, in my view, have the potential to provide the thrust. In case the Sensex reacts, it could find support at 3144. My advice would be to continue to go long on the middle andfeatherweight stocks in the Sensex folder irrespective of any pull-back in the index due to heavyweights.