The market opened on a weak note at 2930, some 11 points down from the close of Friday. On the upside it could post a gain of just 8 points at 2938. It slipped to as low as 2908, but recovered to post 2920 at closing. In terms of all the above parameters the index was roughly 20-30 points down.

On the daily charts for the Sensex the stochastic indicator is in the oversold region. Both the stochastic indicator and the RSI indicator are below their triggerline. However, on the weekly charts the stohastic is still in the positive territory. In simple terms the phase for picking up for the medium term has still green lights on.

The index has the potential to decline further, as Reliance and State Bank continue to be technically weak. On the other hand ITC could bounce. Tisco and Telco could slide some more. NIIT isfighting back but is still not out of the woods. HLL might well provide the counter weight. It has firmed up.

HPCL is holding its breath. Infosys has turned weaker, and it is doubtful if it will help the Sensex up. Larsen & Toubro, Mahindra & Mahindra and MTNL are looking for the first sign of Sensex recovery to bounce back.

A notable feature of Monday's trading has been the significant decline in volumes. This is an indicaton that while the market continues to be weak, the down sentiment is not overbearing.

What is likely to happen is this - while stocks like NIIT, SBI and Reliance continue to slip others may be taking a toe hold for a move up. The index has the potential to slip to 2843. On the other hand the fact that the index failed to slip below 2908 today puts a question mark. Unless the bears come out strongly the index may not go down as far as 2843, but 2886 cannot be ruled out. The Sensex would now enter on the downside an unsteady zone, where intra-day volatility could be high.