On the daily charts, the stochastic indicator is still positive. It was placed at 24.84, well distanced from the trigger line, which was at 15.55. This distance can take care of some more slide in the index without aborting the short term recovery.

With the recovery process just 3 days old, the weekly indicators are yet to turn positive. The 12-week ROC continues to slope down and was placed at 23.82. The 14-week RSI has been on a downtrend since the upmove was aborted on July 30. Currently it is at 39.86 with the trigger line at 40.88.

On the monthly charts, the index by dipping to a low of 2924 has gone below the June, 1998 lowof 2951. As the RSI indicator on the daily charts has failed to cut through its trigger line, one should keep the possibility of the Sensex further heading down towards the 2713 level of December, 1996 open. The market behaviour next week could answer this question.

In terms of Sensex drivers, HLL has formed a curved saucer pattern that could trigger an upshoot. While stochastics is positive on the daily chart, some more firming up of price would trigger even the RSI, giving signal for long term investors. HLL could well lead Sensex recovery. Attenuation of volume at Bajaj Auto indicates that the bottom of Rs 604 may not be breached. Hindalco, BHEL and BSES could add strength to the Sensex in the coming week. HPCL, MTNL, SBI and Reliance are weak. ITC is stabilising. So the forces between the bullish and bearish scrips for the coming week is evenly placed as at end of Friday. But for any serious negative sentiments, Sensex has a fair chance of inching up.