Though a weak trend continued to prevail for quite a bit of the session, fund buying saw the market give a respectable close.
The debate about how the market would behave after the abolition of carry-forward trading and what trading strategies should be adopted in the new scenario is the topic of discussion in every circle.
The energies of most traders these days is more concentrated on trying to formulate a winning strategy which would be sustainable and workable.
The view largely prevailing is that the FIIs, with their deep pockets, will be the one to call the shots especially due to the fact that all the erstwhile big market operators have been grounded or have chosen to stay on the sidelines, waiting for the dust to settle.
Prudent moves
The Prudent fund was in the forefront today in helping the market get onto an even keel. Stocks which were sinking received a boost, with the fund buying largely into software counters like Infosys, Satyam Computer as well as Sterlite Optical.
The fund is reported to have bought a basket of stocks worth about Rs 40 crore today. Universal Banking is also reported to have bought about one lakh shares of Infosys today with the fund speculated to be the Open-Hire fund, the one which has picked up about 4 lakh shares of the stock in the past few days.
The buying in software by funds was also aided by the Big Bull brokerage which picked up 11 lakh shares of Satyam Computer in yesterday's session.
Unfortunately, the prices refuse to hold due to the unwinding of outstanding positions, in view of the July 2 deadline.
While the FIIs are buying with the view that it would be difficult to accumulate large quantities at such prices after July 2, local punters and institutions are selling off, thinking that stocks will not be salable after that date.
Crucial levels
HLL is trying desperately to hold its own and the 184-level is being keenly watched. Considered to be a crucial support level, a break of this price could see the stock in a bad shape.
A total of 4 lakh shares were bought today, though the fund's identity could not be confirmed. However, as days pass, the tug-of war at the counter is bound to intensify.
The Reliance stock is also crucially poised and managed to close above the 360 levels. The activity on the counter is evenly positioned with buyers emerging at every decline and every rise bringing in a new lot of profit-booking.
The King Kong brokerage and Uncle Jam have been the prominent sellers at this counter, which has seen it lose some value in recent days.
