This is in view of the dawn of Y2K. What do technicals indicate in such a scenario? The Sensex closed at 4874. The dip is a combined effect of several factors. Fears about high badla rates is one.

Technically speaking, the stochastic indicator on the daily Sensex has triggered a sell, in view of the substantial drop in the index over the last two session.

The RSI indicator is kissing its trigger line and has not signalled a sell yet for long-term investors. On the weekly chart, the RSI indicator has signalled a buy. Even the stochastic continues to be in a buy mode. This is despite the sharp decline in the index in the last two trading sessions.

Whatever the implications, the short-term indication is for the downside to proceed. But, if that happens, the index is likely to take support at 4629. On the contrary, soon we would be seeing the New Year. Scrips have only one way to go.

Especially, when you consider the core sector, commodity sector and other sector stocks remain being value picks even now. Should the market dip, it is very likely that there will be a rush to buy at the bottom levels I have mentioned. And that can happen even before the New Year. The alternative between staying away and being on the look-out to stoop to pick, the latter is a better strategy. So would it seem. Here is then wishing you a Merry Weekend!