Although the nuclear tests have gone well with the common man, fears of sanctions have affected the sentiment on the bourses. While nuclear test could be blamed for Tuesday's fall in the market, most of the pivotals had given a hint of a fall well in advance. For the last four trading sessions, pivotals like Reliance, SBI, Hindustan Lever, ITC have been showing weak signals. The fall on these counters is expected to last for at least one more day. Which does not augur well for the Sensex.

With the 77-point fall on Tuesday, the Sensex has penetrated its immediate low of 3926. In terms of close also, it has dropped below its immediate close supportof 3970 points. From medium term point of view, the fall is a cause for concern. The fall has occurred after the formation of a lower top, which is not a healthy sign as the short and medium term moving averages have entered into a negative phase, that is the short-term average is below the medium-term average. This has occurred almost after five months. Lower top coupled with a divergence in oscillators and negative averages are nothing but an indication of increasing weakness. The next support for the Sensex is in the area of 3852 level. The current downtrend is expected to take the Sensex to this level.

The weakening position of the Sensex is nothing but a reflection of bearish pivotals. With the latest fall, strength of these counters have taken further declined. For the next couple of days, pivotals like SBI, Reliance, Hindustan Lever, Tisco, ITC and Tata Tea are expected to remain weak and may further lose grounds. Other counters where weakness is expected to continue are - Telco, BHEL, BSES, Colgateand MTNL. Other counters where an exit can be considered are - Essel Packaging, Zee Telefilms, BPL, Bharat Forge and Hero Honda. With the future trend being expected to remain negative for the next few days, fresh buying should be strictly avoided.