Some may consider the rise to 3820 marginal compared to the 3818 level, which was the previous high for the index. The reality is that the index earlier rose repeatedly to cross that level and failed.

This time around it has gone through this level in one straight surge of upwards movement. That makes it different, even though the gain is only marginal.

Should the index retract it will now find support at 3713. The RSI indicators shows that the index has enough ease to move up towards the target of 3960.

The current market surge is leading to a forced change of perception in several stocks. Bhel, which went down following its poor results, is moving back. This is a clear case of market enthusiasm adding colour to valuation! Clearly the market is excited and unless you keep your cool youcould get caught on the wrong foot, and fall downwards.

This happened at Castrol, where the scrip opened at Rs 920, from the previous close of Rs 835, only to move down and close at Rs 877. The previous high for castrol was Rs 898. A opening above this level could have been a clever manipulation by intelligent operators to trap others! Colgate, which was finding a resistance at around Rs 208 benefitted by the market fervour and broke upwards to Rs 218. Rs 230 and Rs 224 are the earlier peak levels. Therefore those who had short sold before today's outburst, can average by selling more at the Rs 230 level. Thereafter it will be a game of patience!

The market could see some profit booking on Tuesday, on account of end of the week consideration at the NSE. You will stand to gain in booking profit partly and selectively.