The Sensex posted an intra-day high of 4651, which was an improvement overthe previous day's high of 4606. Even the low for the day at 4557 was muchhigher than the previous low of 4488. At close at 4605, the index had gained13 points. The market is at an extremely interesting postion. Just on theface of it, the index has the potential to move up another 150- 200 pointsthis week itself. But that level could end up triggering profit-booking forFriday.

A correction wave could then set in motion by the end of the way to becarried through next week. This could, of course, change if there is amajore fund flow coming in. That would depend upon the big players, theFIIs. For them, it is the alternative between going in for their big buysnow or waiting for a correction. The Nasdaq index is not exactly weakening.In fact, it is stabilising. That, in turn, could well be due to the recedingof the fears about the next round of interest rate hike beyond June.

If punters decide to play bull, they could be holding their positions to seeif they could extract more profits. But the FIIs have used such marketsituations to book profits. In any case, without consideration for what theother player would do, it does make sense for mutual fund managers to booksome profit now. Same for the individual investor. But at the same time, youmust get back into the market soon thereafter.