However, the investor sentiment has partially been revived on the realisation that this aggressive response by the Indian armed forces has effectively called Pakistan's bluff on the Kashmir issue and the world at large has noticed the same. Last week, we had predicted a technical downswing, and although it occured, the speed got precipitated by the war clouds over Kargil. The bounce back has already begun, although at higher levels the Nifty is bound to face stiffer technical resistance.

Traders could consider initiating long positions at the counters of Pfizer at Rs 1160 (square up at Rs 1195) and ITC at Rs 1005 (square up at Rs 1040). Short positions could be considered at the counters ofColgate at Rs 215 (cover up at Rs 1195) and ITC at Rs 1005 (square up at Rs 1040). Short positions could also be considered at the counters of Colgate at Rs 215 (cover up at Rs 195) and Telco at Rs 195 (cover up at Rs 180). At the moment, it has become even more imperative to try and close positions on a daily basis as the situation on the border front still remains very fluid.

Long term investors could again await the next technical correction to boost their portfolios with some bargain buys. For starters, they can keep an eye on the counter of Kodak. The dark horse bet of this week is DLF Cement, at the counter of which there appears to be growing trading volumes.