The Sensex opened at 3159 with a drop of 52 points from the previous close. Thereafter it went ahead to post a low of 3108 and recovered to close the day at 3113.

In the process the stochastic indicator hit 49.55 and cut through its trigger line, which is at 53.33. The stochastics indicates that there is room for quite some more slide to the index. This view is also confirmed by the heavy weight HLL, which too opened downswards with a gap. It could find support at Rs 1625.

Bajaj Auto is close to an important support level. A break down from Rs 615 should be a signal to indeed a worst case scenario for the markets. At BHEL the stochastic indicator has signalled a sell, but the scrip is close to its previous support level. Colgate has had a precepitiousfall, but could find support at Rs 226. Glaxo which fell to Rs 361 could find support at Rs 351.Gujarat Ambuja Cement has fallen through an important support level at Rs 222. The previous bottom of January is at Rs 206, which should buoy this scrip up. HPCL is resisting further fall and could counter the fall of other Sensex scrips. ITC at Rs 599 is only Rs 10 away from an important bottom ie. Rs 589.

Reliance and SBI have the potential to shed some more skin. When you put all these together it is not impossible for the Sensex to shed some more points to touch 3083 and thereafter even 2954. But we are reaching a stage where some counters like SAIL and IPCL have already started attracting long positions.

It is a mixed trend right now, but the balance could slowly tilt towards moving up over the next 3-4 sessions.