The 12 day exponential moving average is at 3921 (Sensex at 3912) and the 40 days exponential moving average is at 3765. The market was subdued today, but one should note that the loss of 52 points is to be compared with its strident gain from the low of 3675 of May, 28 and the opening of 3835 of May 31. The immediate nextmove of the market will obviously depend upon a close reading of the border happenings. At the time of this writing, the Indian army is reported to have tightened their grip on the situation; on the other hand, the conflict is spread across all along the LoC.

The loss in Sensex on Tuesday could well be attributed to the last day of the NSE week, especially under current circumstances. The opening of the new week at NSE on Wednesday could aid to firm up stock prices. While it is easy to be intimidated by the Kargil situation, there are a few pointers, which seem to give a different picture. Bhel lost only 0.44 per cent, HLL gained by 0.18 per cent, ICICI gained 2.58 per cent, Larsen lost only 0.02 per cent and Ranbaxy went up by 1.81 per cent. These could be indicating that some selective investment is on.

Investors will have no choice but to judge the market on Wednesday as it trades. We have reached the point, where I expect bold and long term investors will be eagerly looking for opportunities toaccumulate more. You could join them, protecting yourself with a suitable and tight stop loss.