With a free-fall on counters like Satyam Comp, Zee Tele, Infosys, Bhel, Telco, Tisco, and SBI, the Sensex lost 130 points. The fall could have been more severe had counters like HLL, and ITC contributed. Both these counter remained firm throughout the day.

From Sensex point of view, the first round of correction seems to have taken place, and one can expect a bounce.

The index has a support at 4100 points, and the level of 4220 points should be considered as the first hurdle.

Among the heavyweights, ITC appears attractive and may provide a boost to the Sensex in the coming day. The stock has made a good base at Rs 885. The next hurdle for the stock is at around Rs 1,050.

HLL also made an attempt to move up but failed to sustain at higher levels. The stock will find it difficult to cross Rs 198 above which the position will show an improvement. It has a good support at Rs 186.

MTNL remained in a narrow range. The level of Rs 182 should be considered as stop loss point for long positions. Bhel continued its downtrend. Since there has a one-way for of nearly 15 per cent, a bounce is around the corner. SBI also showed weakness. While a bounce is not ruled out, the position has weakened.

The position of Reliance is however better. The stock is close to its base of Rs 336. It may make a comeback though. The position of Rel Petro however is not very impressive.

The cement stocks also showed signs of weakness. L&T has a support at Rs 198 which should be used as stop loss. The level of Rs 212 is fresh resistance level. ACC has also made a fresh support at Rs 159 which should be used as stop loss for long positions.

Among the new economy stocks, nearly all the stocks have broken their immediate supports, and fresh reference points will made in the near future. In case of Infosys, the level of Rs 7,670 becomes an important resistance level, and medium term position will improve only above this level. It may, however, show a bounce.

Zee Tele also dipped below its important supports. While a corrective bounce not ruled out, the short-term position will take time to improve. For Satyam Comp too, a corrective rally is not ruled out but it will find it difficult to sustain at higher level. Overall, the next few days will be mixed for stocks. While a corrective bounce is not ruled out, one should be cautious of long positions.