The index opened on a positive note at 4204 as compared to Friday's close of 4192. But after one hour of trading, it dived south and hit the intra-day low of 4143 an hour of lunch. Thereafter there was quick recovery. Tuesday is a holiday. And there was need for squaring the shorts at NSE.

The daily stochastic for the Sensex has cut upwards through its trigger line. This is a buy signal. But the fact remains that it is still travelling below its 7 day's exponential moving average which is at 4245. The index is moving broadly in a band between 4363 and 4128.

ACC is bullish with good volume and will continue to move up. Apollo Tyre is resisting further fall. Aptech has stabilised but volumes have shrunk up. Ashok Leyland has the same story. Bajaj Auto continues to attract volume and is holding its head high.

Technicals still green here. Ballarpur is geared for a short upthrust. Bank of Baroda is seeing volume and could move up. Even in Bank of India volume buying is unmistakeable. The scrips might be weak on price, but volumes show that buying is on. This should lead to sustained rise later on. Log on to Bharat Petro. Technicals indicate that it should go up. Recommended for fund buying for medium term. Castrol is form. Hang on there. You can reap higher profits. Digital Equipment has firmed up with volume.

You could buy. Dr Reddy is on a support level. E-Merck has support at Rs 363. Buy Hero Honda for medium term. HLL could rise to Rs 255. Himachal Futuristic is trying to hold on to its high level. Even though there is volume the quick rise from Rs 1255 level suggests that it could be vulnerable for profit booking. But book it close to Rs 1500.