This week's fall was undoubtedly more than a correction to its previous rally. Although a correction was expected in the first half of the week, a fall of this magnitude came as a surprise. The extension of the correction is clearly not healthy for the immediate future of the market. Earlier, the Sensex has posted a higher bottom as well as high top which presented a positive picture in the short-run. However, with the last week's fall, the scenario has changed to negative.

The current position of major Sensex drivers is also far from impressive. Among the heavy-weights, except Hindustan Lever, other majors like ITC, Reliance, Tisco, Larsen & Toubro, SBI and Telco are extremely weak. In fact, Reliance and Tisco are below their major support levels, which is a bearish signand hints at a further fall. The fall on the Reliance counter has been supported by rising volume on the BSE. Similarly, ITC has also broken its one-month channel which is again a bearish sign.

As such, looking at the position of these majors, a sharp revival in the Sensex is unexpected. In all probability, the Sensex may try to test a level of 3000 points once again. It enjoys good support in the range of 2900-3000 points and if fallen to this level, investment buying is expected. However, till that level, the position is clearly bearish.

Overall, next two-three days are expected to be bearish. Stocks like Arvind Mills, HDFC, HPCL, IDBI, Indian Rayon, Ingersol Rand, SAIL, Kesoram, SPIC, Carrier Aircon, GNFC, Bombay Dyeing and BSES are expected to remain weak.This week, a large number of stocks have broken their short-term support levels, pointing towards a further decline. Stocks like Ashok Leyland, Castrol, Godrej Soaps, Crompton Greaves, GE Shipping, Mahindra & Mahindra, Raymonds, Smithkline BeechamPharma, Tata Chemicals, Tata Tea, United Phosphorus and Zuari Agro feature in this list.

Of the specified list, just two stocks - CESC and Cochin Refineries - have a good technical position. As such, traders may remain short for two more days. Those investors who want to make fresh purchases require to wait for some more time.