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Upsurge in Sensex continues despite technicals entering overbought zone
K Seshadri
Yesterday, this column had pointed out that after the spate of profit booking at the high levels on Monday, operators had the choice to go long once again, instead of booking some more profit. I had argued that there was no ground for a bear attack either. Operators in fact decided to turn bullish again, despite the NSE week closing. Many scrips resummed their onward march and the Sensex closed at 5057, posting a gain of 25 points day over day. Opening at 5035, some 3 points higher than Monday's close of 5032, the index posted an intra day high of 5077. This was an improvement of 26 points over the previous high. The low for the day however dipped below Monday's low of 5029. It went as low as 5023. The market closed on a positive note at 5057, gaining 25 points day over day. The daily stochastic indicator for the BSE100 has entered the overbought zone. However, going by the longer term indicators there is scope for the market to move up higher. The broad market indicators does indicate that profit booking continued to some extent on Tuesday. The number of advances at the BSE went down from 1501 to 1400, while the number of declines went up from 598 to 751. The volume in advance shrunk sharply from Rs.2959 crore to Rs.1579 crore and that in decline quadrupled from Rs.341 crore to Rs.1380 crore. At the NSE the number of advances went up, despite the week-end there, from 624 to 710, and the number of declines went down from 550 to 487. The volume in advance came down from Rs.2334 crore to Rs.1948 crore and that in decline increased from Rs.1185 crore to Rs.1842 crore. The BSE500 indicates that the gains have been well spread in the market and continues. Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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