For the index, it was a gain of 184 points and the major contribution came from stocks like Infosys, RPL, ITC, Satyam Comp, Zee Tele, MTNL, Bhel, and ICICI.

Although the depth continues to remain low, there was a sense of exhaustion as far as selling was concerned. Bargain hunting at lower levels also played its role. The level of 3436 points should be a key reference point for long positions for the index.

On the upper side, the level of 3940 points will act as major resistance. With the latest bounce in prices, the low formed on Tuesday or Wednesday (whichever is lower) should be considered as an immediate reference point in individual counters and should be kept as stop losses. The latest lows formed on Tuesday or Wednesday will act as first support levels in case of old as well new economy counters.

Fresh purchases, if at all, are made should have these reference points for stop losses.

Although the recovery is a welcome relief for falling prices, the nature of rally is corrective and will find it difficult to sustain at higher levels, say 10 per cent from the current levels.

Unless there is a proper consolidation, big positions should be avoided. The consolidation process has just began and will take some time to get over. Players should be cautious at higher levels.