Market Waits On Us Action

There were only marginal changes in stock prices this week as trading was range bound with the Afghan crisis still in flux. Bargain hunting across the tech sector late in the week did pull the major indices marginally ahead of last week's levels.

The Sensex ended at 2812.9 points, just 0.05 per cent ahead of last week's close. The Nifty was at 914.6, ahead by 0.08 per cent. The Defty lost marginal ground as the rupee stayed under pressure. Breadth indicators were negative. Volumes were low, Declines outweighed Advances and the BSE 500 confirmed the negative undercurrent by losing 0.98 percent.

The critical resistance remained 2830. The market reacted several times from close to that level. At the lower end, there seemed to be support at around 2730. We will have to wait for a breakout from these levels.

It's not likely to happen until the next phase of action in the Afghan Crisis and if the situation escalates into open war, the market is more likely to react downwards.

In technical terms, the long-term trend remains negative, the intermediate trend is difficult to judge and the short-term trend is neutral. The market certainly an important bottom at the 8-year low of 2600 and it hasn