The performance of old economy counters however was reasonably well but could not stop the index from showing a huge loss. For the future, the outlook for IT is far from impressive. In fact, the latest fall on the Infosys counter can trigger a fresh round of selling in tech stocks.

After breaking its important base at the Rs 5,500 level, it was a free fall for the counter. The next base for the counter exists at around Rs 4,000.

The position of Zee Tele is the worst. The stock is below all supports, and any rise will attract selling pressure. So is the case with Satyam Computer.

This counter has also broken its important support at Rs 295, and the outlook is extremely bearish. At best, a corrective rally may occur, chances of which are minimum.

As for HLL, the outlook is yet to show any sign of weakness. The stock has a base at Rs 228, which can be used as a short-term reference point for long positions. Reliance has shown a sharp fall from the day's high but the position will weaken only below Rs 395. A bounce is expected in the short-run. RPL has broken its immediate base, and the position will improve only above Rs 64.50. SBI has done very well in the near future. While the outlook remains positive, it has a major hurdle at around Rs 290. The position of ITC, however, is not very encouraging. The stock is below its first important base, and unless the level of Rs 830 is crossed, one should avoid long positions.

In case of ACC, the uptrend may gather momentum above Rs 200, whereas L&T's move is likely to accelerate above Rs 292. It has a base at Rs 272, which can be used as stop-loss for short-term positions. Other cement counters are also expected to do well. Cement counter also did reasonably well, and the outlook continues to remain positive. Bhel also remained firm, and the outlook is favourable. For Tisco, unless the level of Rs 148 is broken, the position appears favourable.

Overall, the IT stocks are expected to extend their losses in the near future. The performance of old economy counters has been positive but a bearish trend in IT ultimately may have its impact on old economy stocks too.