New Delhi, March 24 -- Dear reader,

Last week, I wrote that the average retail trader appeared exhausted. I also advocated that the end of March was likely to be dominated by institutional players. Mutual funds, hedge funds, and corporate promoters have a vested interest in seeing stock prices rise higher. Last week, we saw the market validate this hypothesis.

Last week, I advocated increasing activity in public sector undertakings (PSU) stocks, which occurred along expected lines. Many of these stocks had fallen extensively in recent weeks, and a minuscule amount of short covering triggered an upthrust. This may continue this week as well provided follow-up buying continues. Traded volumes rose which tells us intraday traders' particip...