The current position of pivotals, however, suggest that a technical rally is likely which should help the Sensex in the short-run. The only hitch is forthcoming holidays which may delay this process. Hindustan Lever has remained mixed for the last couple of days, and an upward correction is most likely. For Infosys, the position has improved in the last two days, and further improvement is expected from the current levels.

ITC, too, is heading for a rally. The position of Reliance, and SBI is equally promising in the short-run. NIIT has also crossed its short-term resistance and appears positive for the next two days. Similarly, MTNL has moved above its resistance of Rs 172. This is a positive signs and the help the stock in coming days.

Among the index-based stocks, Ranbaxy was the star performer in the last two days, and one can expect a further improvement on Friday. The stock has a resistance at around Rs 960, which is around six per cent away from the current price. Castrol also appears positive. Bhel is the only heavyweight which is weak. On the upper side, unless it crossed the Rs 275 level, bear operators would have a strong hand on this counter.

While the medium-term outlook for ACC is negative, one can expect a rally, which would be nothing but a technical correction to its previous fall. Tisco and Telco should also improve. Overall, for the Sensex a rally from the current level is not ruled out.

For the software sector, the technical rally is likely to be impressive. Satyam, and Pentafour has already kicked off the process. Satyam hit the upward circuit for the last two consecutive days. The outlook for the stock is continue to be bright. For Pentafour also, one can expect a further improvement, as its has moved above its shor-term resistance levels. Other software stocks are also likely to do well. For Digital Equipment, the rally is likely accelerate above Rs 583. For HCL, the resistance is at Rs 430. Global Tele would be attractive above Rs 535. For Silverline, the move would be good above Rs 391. The position for Himachal Tele has also improved. Overall, positive for next two-three days.

In specified list, where a rally is likely are : Dabur, Bharat Forge, BPCL, E.Merck, Brittania, Crompton Greaves, Grasim, Gujarat Ambuja, Indian Oil, Indian Hotels, L&T, Oriental Bank of Commerce, and Pfizer.