The market consolidated further on Wednesday with the Sensex moving up to a high of 3625. But at close, the index gave away much of this gain to close a shade better than Tuesday's closing of 3570. The final figure was 3587. The gain in market confidence is reflected in the advance-decline numbers. The number of advances on BSE went up from 565 to 703. However, the fact that many preferred to book profit is reflected in the volume data. The volume in advance declined sharply from Rs 1318 crore to Rs 729 crore, and that in the declines went up from Rs 501 crore to Rs.1252 crore.
On NSE, where it was the first day of the new week, the number of scrips in advance went up from 388 to 591, while the volume in advance actually went down from Rs 1531 crore to Rs 729 crore. This deduction is that while there was a confidence in the stabilising process, operators sill preferred to book profits. The number of declines on NSE went down from 648 to 398, while the volume in decline went up from Rs 728 crore toRs.1252 crore.
While the stochastic indicator is looking up, it shows the need for some more consolidation.
ACC can be expected to inch up further. Bajaj Auto looks good and can firm up at Rs 602. The trading fraternity may now decide to hike BSES to Rs 225 level! Hang on and extract profits. ITC may see some temporary cooling off at the Rs982 level. HLL could firm up further. Infosys is making a steady advance. Larsen & Toubro has firmed up but the technical weakness has not gone away completely as yet. MTNL has seen big volumes and may continue to move up further. Novartis is buoying, having dipped sufficiently. Ranbaxy can gain further Rs 50.
Reliance seems to be losing its momentum and could go into micro-decay. Tata Power has moved up with a gap - you may continue to hold. Telco is likely to move up.The market appears to have shed its blues.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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