But the latest fall is not a reason to worry. The latest move is more of a corrective nature of its recent rise. While the undertone may remain positive, the index is likely to stabilise around 4300 points but the main base will continue to be at 4200 points.

Among the heavyweights, the latest fall on the HLL counter was more of a corrective nature. While the support is at Rs 200, the importance of the level at Rs 217 has increased further. Reliance has also declined from its all-time high. The undertone for this counter is positive but the announcement of its third quarter results will also determine its short-term outlook. Rel Petro also falls in a similar category.

SBI continues to remain above its first support at Rs 224 whereas the level of Rs 237 should be considered as an immediate resistance. ITC has shown a further improvement on Wednesday. The first hurdle for the counter is at Rs 930. MTNL remained firm, and unless the level of Rs 188 is broken, the short-term outlook will remain bullish for the counter. Bhel showed a sharp reaction from the day's high. The outlook continue to remain positive.

For Tisco also, the undertone remains positive. The cement counters have also witnessed profit-booking at higher levels. ACC is yet to break any support, and the counter is likely to do well in the short-term term.

The sentiment for new economy stocks also remained negative. SSI and HFCL recorded a sharp fall and this had a negative impact on other counters.

Infosys did not show a major fall. The outlook for the counter will improve further above Rs 6,925. The level of Rs 6,575 is an important support.

Satyam Comp may also show a sideways move before it starts its next upward journey. Zee Tele has remained weak but the position will improve above Rs 273. Immediate base exists at Rs 260.

Overall, a mixed trend is expected. Stocks like Digital Equipment, Infosys, Wipro, ACC and Cipla appear favourable for long positions.