For extremely short-term, the immediate resistance is at 4500 points. On thedownside, even if the Sensex forms a higher bottom, the correction which islikely can last upto a level of 4250 points.

Individually, HLL has formed a strong resistance at Rs 2650 above which theoutlook will improve. On the downside, the fall is likely to acceleratebelow Rs 2500 which is the first support level. For Infosys, the immediatersupport is at Rs 6800 which can be used as a stop loss. For Reliance, thesupport continues to remain at Rs 337. On the upper side, a strongresistance is at around Rs 365.

Satyam, and Zee have shown a strong close, and are likely to remain firm inthe first half. For Satyam, the major resistance is at Rs 2700, and in thecase of Zee Tele, the resistance is at Rs 560.

Reliance Petro has shown a steady improvement in the last few days which ismore of a corrective nature, and seems to be coming to an end. MTNL, and L&Thas displayed signs of weakness. ACC, Bhel, Ranbaxy, and Telco also fallinto same category. SBI has done well but is very close to its resistancelevel. As for ITC, the stock has fallen sharply from the peak, and adownward correction is likely on this counter. The position of Tisco howeveris encouraging. The stock has crossed its medium term resistance and islikely to do well in the near future.

BSES has also shown sideway movement which is a good indication. The stockhas a good support at Rs 275 which can be used as stop loss for longpositions.

Meanwhile, the IT stocks remained in great demand, and showed a smart rally.This rally may show a slowdown in the next two days, and may enter into adownward corrective mode then. However, after this correction, if thesestocks show an uptrend, one should take a long position on these counters.At this juncture however, one should wait.