With the latest move, the index is approaching its immediate resistance at 3950 points. The level of 3756 points is an immediate reference point for long positions. The next base for the Sensex is at around 3436 points.

While sentiment remained firm, the tech stocks gained. Infosys has come close to its immediate resistance of Rs 4,900, and an uptrend is likely to face a strong hurdle at around Rs 5,300. One should avoid long positions at this juncture. Zee Tele is also close to its first major hurdle at around Rs 150. The level of Rs 130 is an immediate reference point for long positions.

Satyam Comp has a major hurdle at around Rs 270 and one should wait for consolidation before one takes a long position on this counter.

Although other tech stocks have also shown a smart rally, one should wait for long positions. The old economy counters have also attracted buying interest but the uptrend will find it difficult to sustain at higher levels.

In case of Reliance, the level of Rs 422 is first major hurdle. The level of Rs 390 is an immediate base. HLL has also improved, and the level of Rs 206 should be considered an important reference point for long positions. ITC may also witness selling pressure at higher levels. The immediate base lies at Rs 800. RPL is also close to its immediate resistance. Other stocks like MTNL, GACL, Bhel, Tisco and ACC also falls into same category. Overall, although the rally continued for the second consecutive day on old as well new economy counters, since the main trend for stocks is down, one should wait for long positions at this juncture.