New Delhi, Dec. 7 -- Ticker is a weekly newsletter by Vijay L Bhambwani. Subscribe to Mint's newsletters to get them directly in your email inbox.

Dear reader,

Last week, I wrote that bulls appeared to have an upper hand, read here. The markets barely managed to stay above water after the participants saw the rupee weaken further against the US dollar. This raised concerns about imported inflation in the coming months. The firming up of oil and gas prices also added to the worries. It was only after the Reserve Bank of India (RBI) cut interest rates by 0.25% that markets recovered.

As I have been writing for the last few weeks, follow-up buying is of extreme importance as bulls must absorb all selling that emerges at higher levels to e...