Technical analysts expect the benchmark Bombay stock exchange, which closed last week at 4,477.31, to face resistance at 4,555, followed by 4,650 after that.

The index gained 1.36 per cent last week and is up nearly 200 points or 4.6 per cent over the month, powered by gains in the software sector. The market was closed on Friday.

The technology sector will stay at the helm of portfolios for most of this month as well, as accumulation takes place ahead of the second quarter results in October.

Analyst Vipul Dalal of SMIFS Securities said expectations of a repeat performance from the software sector, which posted average growth of 59 per cent in net profit in the first quarter, would aid market sentiment.

With forex analysts expecting the rupee to stabilise in the short term after its rocky ride in the last few months and a decision on an oil price hike not due until after OPEC meets on September 10, near-term sentiment in the stock market appears bullish, dealers said.

The rupee, under pressure mainly on importer dollar demand and reduced capital inflows, had hit an all-time low of 46.08 to the dollar on August 11.

Central bank directives to exporters to speed up inward remittances of foreign currency earnings in early August have helped improve dollar supply, which has also been aided by increasing inflows of foreign funds.

The rupee regained some paise and closed at 45.765/775 on Thursday.Data from markets regulator the Securities and Exchange Board of India (Sebi) showed foreign funds were net buyers of around $291 million in the period from August 1 to 30 after combined net sales of nearly $550 million in June and July.

The infotech shares index had fallen 55 per cent to around 2,700 in early August from nearly 6,000 in April.

Attractive valuations have brought buyers back to the market, helping the infotech index gain 25 per cent in August. It ended up 3.35 per cent or 126.18 points at 3,894.97 on Thursday.

Market participants are also bullish on the prospects for Prime Minister Atal Behari Vajpayee's visit to the United States next week, and hope business will get a boost from it.

"The market will open firm on Monday after the strong close at the end of last week, but it will be pulled down on profit booking by the end of the day," said Vijay Bhatia, dealer with Motilal Oswal Securities.

"But the fall will be a good opportunity to buy, and gains are likely in the rest of the week," he said.

Dealers said selective buying could be seen in the cement and pharma sectors as well.REUTER