The market has become very selective and discretionary. The downtrend could not hold back Voltas, Glaxo, German Remedies, Thomas Cook and the like.The market opened weak at 4703, down 14 points from the previous close of 4717. The index could moved up just 19 points to post 4722. The intra-day low at 4586 was 98 points lower than the previous low of 4684. The index closed at 4618 losing 98 points over the previous close of 4717.

The RSI indicator has now signalled a sell. The stochastic indicator had done so at the close of Monday. Judging by the position of these indicators, the index has a potential to grow weaker by another 100 points. If the bear pressure continues on Wednesday, theindex can be expected to take support at 4574. Further down, it has a support at 4370.

The 7-day exponential moving average for the Sensex is at 4609, while the index closed at 4618. Infosys Technologies (negative 7.92 per cent), NIIT (-6.85 per cent), HPCL (-5.32 per cent) and ITC (-4.74 per cent) were the heavyweights that pulled down the index. But for a 2.86 per cent gain in HLL the index would have moved down further.

ACC is weak, but Gujarat Ambuja could now resist further fall. Grasim is resisting an erosion and Indian Rayon is trying to move up after a good correction. Volumes are small at ABB counter and it is resisting a fall. Apollo Tyres is distinctly bullish, after having cleared a resistance at Rs.74. For Arvind Mills, support is close at hand at Rs 34. Bharat Petroleum Corporation could find support at Rs 266. You are advised to book profits where you are at a good advantage. But if you are short-selling you need to be very selective, as the market has a mixed trend. Even Infosys and NIITcould resist and influence the market trend.