In fact, the Sensex had the potential to rise to 5090. But for reasons not known at the time of this writing, the upside potential was aborted. The market, in fact, opened on a positive note. The Sensex opened at 4973, jumping 30 points over the previous close of 4943. But the index could inch up just 5 points to post an intra-day high of 4978, which was lower than the previous high of 4990. The market slid during mid-day, recovered and again went down towards the close. The low for the day was at 4834, and closing was at 4837. The index lost 94 points day over day.

On the downside, the index has a support at 4760. Obviously, the market has preferred the correction, even though it has the potential to be hauled up further. The correction should be seen in a positive light. The support of 4760, if it does hold, is still above the previous low of 4627.

Therefore, it is a case of the index taking support at 4753, and if it does not, the question of testing 4627. Either way, it is good. Ultimately, now that the reaction has won over further rise, we need to wait for the bottom to be found. That would end up giving the necessary buoyancy.

I would also like to point out that a level of 4560 is not impossible, as this could still be considered a bottom for testing. We have just one more day on Friday for the week-end. The market could well digest the profit-booking phase by that time. In such a case, the typical Monday morning fever could catch on.