The latest move has not done any good to the market positions. In fact, the narrow range has increased the market weakness and it indicates that whenever market takes a dip, the fall would be a sharp one in nature.

On the upper side, it has a strong resistance at 4,200 points. Even if this level is crossed, strong hurdle is likely at every 50 points till the level of 4,350 points. As for the downside, below 4,000 points, the next important base is at around 3,800.

Infosys and Satyam Computers will announce their first quarter results on Tuesday. While the performance would determine the trend, Infosys will face a strong resistance at around Rs 7,700 whereas it has a good support at Rs 7,100. In case of Satyam Comp, strong hurdle is at Rs 510, whereas immediate support for the stock is at Rs 470. For Zee Tele, the position will weaken below Rs 420. The last base for the stock is at Rs 405.

HLL did poorly on Monday and the position is expected to weaken further below Rs 198. The level of Rs 219 has become an important resistance, and unless this level is crossed, one should avoid long position on this counter. ITC has also made a strong resistance at Rs 755, and the short term outlook will improve only above this level.

SBI has made a fresh reference point at Rs 169 which can be used as stop loss for long position. The current uptrend is of corrective in nature and may find strong selling pressure at higher levels. MTNL also made a fresh resistance at Rs 128.

The position of cement stocks like L&T, ACC, Guj Ambuja and Grasim may weaken further as these stocks are below their short term supports. Reliance has also moved in a narrow range on Monday. The stock has a strong resistance is at Rs 354. On the downside, the position will weaken below Rs 335. The next support for the stock is at Rs 320.

Overall, the technical position of market is far from impressive. While a corrective move is not ruled out, if market takes a downtrend, the fall is expected to be very sharp.