Published on Mon, Nov 13, 2006 at 09:58 | Source : Moneycontrol.com
Updated at Mon, Nov 13, 2006 at 11:12
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It's time to get cautious on the market
After spending the week in an extremely volatile fashion, there was no tooing and froing about what happened on Friday. It was a breakout once again which has taken us back almost to these all time highs- 13,300 on the Sensex and well past 3800 on the Nifty.
The past weekend would have been nice for the traders in the market, because Friday saw a spectacular closing. After spending the week in an extremely volatile fashion, there was no to and fro movement that happened on Friday. It was a breakout once again, which has taken us back almost to these all time highs - 13,300 on the Sensex and well past 3800 on the Nifty.
So is this week going to start on a very positive note as well after that breakout or are we going to peg back once again after reaching those levels from which we turned last time? It was a fantastic Friday; let us see if Monday can top that.
The bulls are feeling good; they clearly have the upper hand. On Friday, the bears got packed back in a corner once again. After a bit of a tussle last week, the last round went to the bulls. So it could easily be possible that the market exhibit some more momentum as we start the week.
Nevertheless, there are a few technical issues which are floating in the wind, which are suggesting that we are building up very fast now. There is a lot of froth building up in the system as well, as exhibited by the positions in the market.
So there could be a nice little gush up or a gaspfor the market, it could breakout, go up 300-500 points. That's easily possible, but probably around that level you need to be a bit cautious because the market is now beginning to get slightly heavy and that's not what we have set for the last many months.
Yes, signs are building up of a breakout; we could start strong but maybe just heed a little word of caution here as well.
So there could be a nice little gush up or a gasp for the market, it could breakout, go up 300-500 points. That's easily possible, but probably around that level you need to be a bit cautious because the market is now beginning to get slightly heavy and that's not what we have set for the last many months. 
