The daily stochastic indicator for the index continues to be in the positive territory. There are signs of operators winding down positions, as has happened in Bharat Forge. Volume has shot up from Rs 37 lakh to Rs 2.41 crore as the price dipped below Rs 126.

Profit booking took its toll on Cadbury counter as well. Castrol is holding out as volume have shrunk. Positions were unwound at Colgate as well. Glaxo has continued to attract volumes, but could now face price resistance on the upside. While Hero Honda fell, it bounced off at the resistance level, which is Rs 937. ITC has stabilised, but volumes indicate a cautious stance. The upsurge in Knoll Pharma is over.

Dr Reddy is holding out but the support is weak. German Remedy is positive, but volumes do not indicate any great rush. Dabur has reacted negatively. Given that it had risen from Rs 650 level, it is difficult to see how it will hold on. E-Merck has seen higher volume with price rise. Hold on. German Remedies has some upside potential. Volumes have shrunk at EIH. The scrip has come up against a technical resistance.

At Esab the technical indicators have signalled a sell. Global Tele is consolidating. Grasim is finding resistance on the upside. Gujarat Ambuja has a better strength. ACC saw wide fluctuations but has closed strong.Gujarat Gas is bullish but will come up against a technical resistance at Rs507. HCL Infosys is a typical case, where despite a stabilisation attempt, scrips give up the struggle to move up! Himachal Futuristic is tracing a horizontal course, but price dips within the last 5 sessions makes it still risk prone. Hindustan Lever has weakened. Volumes have been shrinking at HPCL counter and it is difficult to see how it can firm up. uPrice rise in Hindalco is welcome but why is the volume low? Volumes are pathetically low in great many number of scrips. Under the circumstances, you need to exercise caution. The downside breakdown risks are to be weighted higher than the potential gain by an upside breakout.