Thanks to a panic selling in the last one hour of trading, the Sensex witnessed a sharp fall, and on net basis the index lost 42 points. Infosys, Satyam Comp, and Zee Tele have been the major culprits. While Satyam Comp, and Zee Tele dipped 3 per cent each, Infosys was down close to 2 per cent. The other heavy weights like HLL, Reliance, MTNL also failed to provide any help.As a result, the index one-way dipped from 4465 points to 4414 points. However, the close has been close to its short-term support, and the level of 4500 points will continue to act as a major resistance.Individually, HLL has shown a weak close, and the next major base for the stock is at Rs 230. The level of Rs 250 will act as a major hurdle for the stock.
While Infosys has affected the Sensex, the short-term outlook for the stock will weaken only below Rs 8,000. As far as the upper side is concerned, the stock has a strong resistance at Rs 8,300 but above this level one can take a long position.
ITC has also dipped 2 per cent, and has closed near its short-term base of Rs 750. The outlook will weaken below this level.
Reliance has also shown a decline, and the outlook appears far from impressive.
The medium term outlook should improve only above Rs 346. As for Rel Petro, the short-term outlook will improve only above Rs 49. The position of SBI and MTNL is far from impressive, and the outlook appears negative. For SBI, the downtrend may gather momentum below Rs 195. MTNL may find a support at around Rs 150.
L&T, and ACC have managed to attract buying in the last one hour of the day. However, selling pressure is likely on these counters. For Zee Tele, the resistance exists at Rs 510, and unless this level is crossed, the outlook will remain negative. As for Satyam Comp, the resistance for the stock is at Rs 590, and unless this level is crossed, one should avoid long positions.
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