In the process, the Sensex dipped to a low of 4176 points - just 16 points away from its short-term base of 4160 points. It has a minor base at this level, and the next support is at around 4050 points. The support thereafter exists at around 3830 points.

With the latest fall of more than 3 per cent, HLL has shown a fall of nearly 12 per cent from the recent peak of 260. The close is near its support of Rs 230, and the fall may show a slowdown.

ITC also remained under selling pressure but did not show a major fall. The formation of a fresh bottom is at Rs 755, and the level of Rs 785 will continue to act as a major hurdle for the stocks.

Reliance also showed a dull movement and the fall may gather momentum below Rs 324.

SBI also showed a negative close, and dipped below its first base of Rs 198. The next base for the stock is at around Rs 191. The level of Rs 205 is a strong resistance above which the short-term outlook should improve. Satyam Comp, Infosys, and Zee Tele also remained under selling pressure. While the all on Satyam Computers may show a slowdown, the closing for Zee Tele has been very weak. Infosys has formed a resistance at Rs 7,500 and short-term outlook should improve above this level.

The position of Bhel, MTNL, Tata Steel, and Tata Engg is also far from impressive, and as these stocks are below their short-term supports. As for software stocks, stocks like Global Tele, Pentamedia, Digital Equipment, Silverline, and Aptech have shown a weak close, and the outlook is far from impressive. One should avoid long position at this juncture.