With the latest rise in index, the low of 4108 becomes an immediate support level. The level of 4260 may act as immediate hurdle.

While the rally is a welcome relief, it is more of a corrective nature, and chances of it sustaining the move at higher levels are not very bright. Among the heavyweights, HLL is making an attempt to improve but is facing strong selling pressure at higher levels. The level of Rs 191 should be used as stop loss for long positions.

ITC showed a dull move but the outlook for the stock continues to be positive. The stock has a good support at Rs 900. Reliance has, meanwhile, made a base at Rs 336 which is an important reference point for long positions. Reliance Petro is likely to show a dull trend in the near future. The cement stocks managed to do well.

L&T is close to its first resistance of Rs 216. The level of Rs 200 will act as a good base. In the case of ACC, the level of Rs 156 is an important support, which should be used as stop loss.

In the case of Grasim, the level of Rs 275 should be used as stop loss. SBI also showed a bounce, and selling pressure is likely at higher levels.

MTNL, meanwhile, dipped and fresh resistance for the stock is at Rs 184. As for the new economy stocks, recovery has taken place but sustaining the move at higher levels appears difficult.

Zee Tele made a base at Rs 290. It has a strong hurdle at Rs 315. For Satyam Computers, resistance is expected at around Rs 380. As for Infosys, since the recovery was one of the weakest, the stock may find strong selling pressure at around Rs 7,300. A minor base is being made at Rs 6,950.

Overall, barring a few old economy stocks, the outlook for other stocks is far from impressive, and selling is expected at higher levels. One should continue to avoid long positions.