The market undertone continued to be firm on Thursday. The nearness of the BSE week-end did not seem to have much impact on the Sensex. That the index closed near the day's high points to the possibility of the rally being sustained through the week. The market opened with the Sensex at 3562, 5 points over the previous close of 3557. The intra-day high at 3659 was an improvement of 52 points over the previous high of 3607. The day's low at 3562 was in the same league, gaining 67 points over the previous low. The index closed at 3649, posting a gain 92 points day over day.The daily stochastic indicator has just entered the overbought zone. Ditto with the RSI indicator. But they have just made an entry and could move up higher. These indicators usually stay in the overbought zone in a strong bull surge for quite a few sessions. At another level, the index faces a resistance at 3684. But going by the fact that the index closed near the day's high, this resistance may not prove formidable. Grasim has nowstarted moving up and has some potential.
Gujarat Ambuja is losing steam. FIIs may now rediscover HLL and that could lend fresh support to the Sensex. HLL has a support at Rs 1997 and it may be worth the risk to enter here. Hindalco may yet grow strong. ICICI is into a profit-booking halt. There is no surety that it will come down, considering the long term trends in the overall market. Book profit defensively. Indian Hotel is on a revival path, after much hesitancy and accumulation.
Fundamentally, though hotel industry scenario is not all that alluring yet; the counter may just provide the vehicle for punters who are looking for any undervalued scrip to ride up. ITC's leap into higher regions is simply spell bounding to say the least!
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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