Sources say in Calcutta alone, almost 50 lakh shares have already been parked with either financiers or pledged with banks against borrowings. At the time of writing, RIL is on the verge of creating its yearly high of Rs 325. Technical analysts say the next stop for the scrip is Rs 342, if the previous peak is pierced, with strong support around Rs 315-317 levels.

Other than RIL, major operators here (all having links with the Mumbai kingpins) are believed to be holding on to their positions in Zee Telefilms, DSQ Software, Himachal Futuristic and L&T, but have substantially reduced their exposure to Ranbaxy, Satyam Computers, Pentafour Software and Global Telesystems.

With operators hesitant to increase their exposurein the light of investigations by the income tax department into the books of leading BSE and CSE members and a concurrent inspection from the capital market watchdog, fresh outstanding business has been limited, say market sources.

RIL stock price has shown consolidation in the last couple of trading sessions backed by heavy volumes. The 56 per cent rise in net profits for the third quarter ended December 31, 1999 has given strength to the counter, say sources. In early trading on January 21, it had already clocked volumes of over one crore shares on NSE and 92 lakh shares on CSE.

According to sources, the market is driven by excess liquidity which has fuelled the rally, particularly in IT stocks. Part of the liquidity is being provided by banks against pledge of shares from operators. In fact, the gains from speculation far outweigh the margins paid by bulls on their carryforward trades.

Of late, attention of operators has been diverted to Kashyap Radiant, where a leading CSE broker has sizableholdings acquired prior to its IPO through a private placement.