Given that the market had revved up substantially on Tuesday, it was butnatural that further rise could not have come immediately. Also, the factthat the intra-day movement on Tuesday resembled almost a key reversal in alarge number of scrips, it made much sense to those who had got in at theintra-day dip of Tuesday to book their profits on Wednesday. This kept themarket subdued, as profit-taking took place when the scrips reached upfurther.However, this is a process of consolidation. The important pointis that the market has tested out a bottom. It is not impossible thatoperators having been put through the shock treatment of the last few dayswould have beenlooking for opportunities to lighten their committment.
The market needs to digest this process. But in this cloud, there is asilver lining. And that is, investors are once again likely to pick upinvestments if scrips dip down too much. That change of perception alone cankeep the market buoyed, and could give momentum on the northside. The marketopened with the Sensex at 4524, much higher than the previous close of 4492.It posted an intra-day high of 4536, which was higher than the previous highof 4495. The day's low was at 4383, again higher than the previous low of4209. At close, the market had lost 36 points to close at 4456.
Even though the market has lost some points, the undercurrent is stillbullish. The daily loss is small considering the previous day's hefty gain.The daily stochastic indicator for the Sensex continues to be in thepositive territory, signalling a buy. The RSI indicator is yet to cross itstrigger line.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.