Sensex opened higher in last 18 trading days

Between August 12 and September 5, the Sensex today equalled its earlier record of successive higher openings in February 2000. The Sensex had opened higher for 18 straight trading sessions between February 17 and March 3, 2000.

Interestingly, in the current rally, which can be dated to April 29 "" the day after the index hit a six-month low "" the Sensex managed to do a 14-day sprint of higher openings between June 25 and July 11.

On August 12, for instance, the Sensex opened higher with a gap of 13.62 points. On some days "" as on August 22, the index opened more than 51 points higher.

On August 26, the day after the Mumbai bomb blasts knocked 140 points off the Sensex, the index opened 17.28 points higher.

The National Stock Exchange's S&P CNX Nifty has also opened higher on the most of the days in the August 12-September 5 period, though the jumps have been relatively smaller since the Nifty is a broader index.

Market sources said higher openings were a sign of inherent bullishness in the market. But one section of the market says the phenomenon is the result of some operators trying to trap short- sellers in the market.

The higher opening by the index, especially the Nifty, has an impact on those who trade in the options and futures segment.

According to a dealer, those who bet on the Nifty futures and have taken a call on the index going up can liquidate their holdings or can take positions based on this trend.

The buying is of course being boosted by inflows from foreign institutional investors.

The current rally which started on April 29, 2003 is now more than 19 weeks old. In these 4 months, the Sensex has appreciated 46 per cent (1,340 points).

Incidentally, in 1999, the Sensex had gained 51 per cent in just 11 weeks. But this time the rise has been relatively gradual, with healthy corrections in between.

The Sensex is yet to reach the 4400 mark, which is the level at which a massive correction is expected and a general resistance. Incidentally the Sensex has been hovering the 4300-mark for a week now.