The market opened with the Sensex at 2831, just a point below the previous close of 2832. But lack of confidence earlier in the day drove the index down to a low of 2799. Recovery gathered momentum slowly and the index posted an intra-day high of 2909. The market closed with the Sensex at 2891.

The repeated and numerous assurances from important quarters that the UTI's contingency can be handled without a crisis, appears to have finally had its impact on the market. Only, the market needed repeated assurance before it would accept this position. In any case, there is no denying the fact that we were for the first time seeing a situation, where two major players, FIIs and UTI were not on the buying mode.

With recoverybeginning on Wednesday, hopefully the bulls would rush in to cash in on the opportunity upside.

Time to reflect on the turmoil of the past 3 days. Sebi must investigate the possibility of any collusion amongst different trading groups to beat down the market. Were they within the rule books? Such an investigation would help the stability of the market.

Now that the recovery has begun, even FIIs might rush in not to miss out on the opportunity. Making money has got much to do with playing game strategies,up or down. More likely up and down!

The attractive prices at several counters, like BHEL, HPCL, Bharat Petroleum, ICICI, Bajaj Auto, Gujarat Ambuja and ACC, to quote a few, are indeed tempting. The recovery in software stocks, whatever the reason, should send a sigh of relief.

On the daily Sensex chart the 7-day exponential moving average is at 2914 and the index touched a high of 2909. The index has another 25 points to catch up before it crosses over this average.

Crossing of this average wouldput the recovery on a firmer footing. Quite likely this will happen on Thursday. The Sensex has a good chance of moving up to 2935.