But before we get into that, I must point out that the loss of 60 points on Tuesday was an extremely unusual occurrence, thanks to UTI's predicament as we all know now.

Profit-taking alone would not have cut so deeply into the Sensex at the current juncture, but for trader's logical response to UTI's reported selloff.

Following this, however, there should have been an upward correction on Wednesday. But that was not to be. Traders seemed to be reluctant generally to carry over positions during the long weekend. In the absence of buying interest, bears made a killing on several counters including pharma stocks. But shrewd investors did not let go of a good opportunity to go long as well. Look at what happened at SAIL and ICICI.

On the daily charts, all technical indicators have deepened further in their sell signal. They have not yet reached the oversold level. That could happen after another 40 points down. However, it is the weekly charts which indicate the opportunity that you face on Monday. The indicators here are still in positive territory.

Some of the heavyweights in the Sensex have now reached levels from where they can bounce back. This limits the scope for Sensex to go down further, when the markets open. Should the index slip, maybe it could go down to 3,000-3,011 points. The Sensex is also now resting close to its 40-day moving average, which is at 3,110 points. It cut through upwards of this on September 9. It had moved up between 100 and 200 points above this average.

With apparently no negatives in the background, it is difficult to imagine that the market would continue to go down, beyond reasons of this week.

On Monday, look out for the market direction or be the first to go long selectively. Higher risks will be rewarded with higher returns. This is for the daring. Conservatives can buy once the direction is clear intra-day.