The daily stochastic is in the overbought region and could favour intra day correction, neverthless. Should there be a serious slip, the index could take support at 4122 points. But other indicators point to the scope of the index continuing its northward march.

I am not saying that the Kargil situation does not pose a risk. It does. This is a paradox on which you will have to make up your mind about your stance - opportunity vis-a-vis the risk of an escalation on the war front. For small investors, I like to advise that you should risk only what you can afford to lose. Again, you could be repeatedly booking your profit and also keep your total exposure on the lower side.

Despite such dilemnas, the market has continued to march ahead. The index posted 4255 at close, gaining 45 points, day over day. Technically speaking, theindex would now face a small resistance at 4300 points. But once the market scales over this resistance, it target is to reach 4500 points.

The confidence gained on Monday continued on Tuesday. The index opened at 4236, gaining 26 points over the previous close of 4210. The intra-day high was 4274, higher than the previous high of 4215 by 49 points. The intra day low too was higher by a similar 45 points at 4255. The market closed on a confident note at 4255, gaining 45 points over the previous close of 4210.

While this looks impressive, the broader market picture reveals considerable profit-taking at the NSE.

At the BSE, the number of advances came down from 763 to 723, with advance volumes going up from Rs 1422 crore to Rs 1509 crore. The number of declines went up sizably from 323 to 482, with volume in decline moving up sharply from Rs 48 crore to Rs.735 crore. The number of scrips with no change in price level went up from 124 to 161. Volumes, however were insignificant, up from Rs 97 lakh to Rs4.91 crore.

At the NSE, the number of scrips went down froom 625 to 545. However, volume came down from Rs 1681 crore to Rs 1279 crore. The number of scrips in decline went up sharply from 313 too 445, with decline volumes flaring from Rs 41 crore to Rs 1023 crore. The number of scrips, where prices remained unchanged went up from 73 to 85, with volume going down from Rs 4.91 crore to Rs 4.18 crore.