With the latest decline, the Sensex has made a new resistance at 4375 points. This would be the first hurdle whenever the market makes an attempt to show an uptrend. As far as the downside is concerned, minor support exists at 4050 points, and the next is at around 3800 points. With outlook remaining far from impressive, one should avoid fresh long positions.

Individually, HLL remained in a narrow range, and did not show a sharp dip. In fact, it showed a positive close. The next resistance for the scrip is at Rs 250, and the support is at Rs 230.

The position of Infosys, Zee Tele and Satyam Computers, however, is far from impressive. In the case of Infosys, unless the level of Rs 7,200 is crossed, the short-term outlook will remain negative. For Satyam, outlook will improve only above Rs 2630. As far as Zee Tele is concerned, the stock is below its all short-term level, and the downtrend is likely to gather momentum below Rs 400 where it has a minor support. On the upper side, it has a strong resistance at Rs 445.

SBI, L&T, ITC and Reliance have also shown a sharp fall. For Reliance, the weakness should further increase below Rs 320. It has a made a resistance at Rs 338.

ITC has also made a strong resistance at Rs 775, and unless this level is crossed, one should avoid long position on this counter. For SBI, the first hurdle is at Rs 205. In the case of L&T too, the resistance exists at Rs 205, and outlook should improve only above this level. Tisco, ACC, BHEL, and MTNL also appear weak at this stage. eligible As for the software sector, with the latest fall, the position has weakened further. Almost all the stocks from the software sector are below their medium term supports, and the decline is likely to continue. Stocks like Dig Equipment, NIIT, Aptech, Pentamedia, Silverline and DSQ Soft appear extremely weak.