The market opened on a bearish note, quite likely due to the Jayalalitha factor. It opened at 3625, with a downward gap. The previous low was at 3684. The index hit a low of 3500, before recovering to close at 3519.

The market breadth data gives a measure of the sell off. The number of scrips in decline at the BSE went up sharply from 904 to 1145, whereas those in advance went down from 800 to 370. The volume in advance dropped dramatically from Rs 605 crore to Rs 30 crore. The volume in decline almost doubled up from Rs 692 crore to Rs 1528 crore.

In terms of individual scrips in the Sensex portfolio, Bhel has the potential to move down to Rs 194 if the bear pressure continues. It may find support at Rs 201 in the intermediate zone. Technically for ITC Rs 855 is a support level. This counter may prove to be the dark horse during the currentstorm.

The worst that can happen to this counter is that it could go down to Rs 815, but it can bounce back anytime now. I expect to bulls to take opportunity of the gloomy mood to pick up the scrip now. Gains can be handsome, as the political cloud clears. Glaxo can support at Rs 840 and if that fails it will move down to Rs 792.

Gujarat Ambuja could become an attractive pick in the Rs 270-260 band. HLL could slip down to Rs 2100 and later to Rs 2060. HPCL may find takers at Rs 180. Pick up ICICI as it slips to Rs 40. You could use the market decline to pick up Infosys at Rs 2540, even though it has shows signs of buoyancy right now. SBI can find its feet at Rs 190; if that fails then at Rs 170. Reliance can be expected to bounce at Rs 120.

Though other scrips in the Sensex folder have the potential to move down, that loss can be compensated by the likely recovery in other heavy weights mentioned above.