The undercurrent has been very strong, and the market seems to ready for a good rally, probably after a short break early next week. The Sensex has good support at 3870 points. The last support is at 3676 points. These supports levels are unlikely to be broken in the near future. In fact, it would not be a big surprise if the market moves above the upper resistance of 4197 points. The next major hurdle above this level is only around 4600 levels.

But before the Sensex manage to touch these levels, it may show a small correction. It could be in the form of intra-day move also. Except Hindustan Lever, other pivotals seem to be in good position.

State Bank is strong and may continue its uptrendtill the level of Rs 267. As for Reliance, the rally can last till the level of Rs 204. ITC is equally attractive. The stock has formed higher bottoms which is a positive sign. The stock is expected to gain further grounds. Among the public sector counters, while MTNL is in good health, HPCL and Bhel may show some weakness in the next two days.

Last week, Tata counters managed to steal the limelight. Tisco and Telco have been the star performers. For Telco, the uptrend is expected to have a smooth ride till a level of Rs 232. As for Tisco, the northward journey can take it above its immediate resistance of Rs 130. Tata Tea have also shown signs of strength and the move is expected to last for few more days. ACC has witnessed a resistance at Rs 192. However, once it moves above this level, and the chances of that are bright, the uptrend is expected to accelerate.

While pivotals have been witnessing good buying support at lower levels, the software stocks have been losing their sheen. In fact, in the recentpast, all the software stock have witnessed a sharp drop in volumes. The price has also witnessed a downtrend. And the future outlook continues to remain bleak unless these counters show their previous volumes. Be it Satyam Computers or Pentafour Software, the outlook is negative, at least in the short run. Similar can be said of the other software counters like Rolta and Digital Equipments.

Among the other stocks, a positive move is likely on counters like Arvind Mills, BASF, Bombay Dyeing, BPL, Cadbury, Cummins, Escorts, Grasim, Nestle and Sesa Goa.