Had it not been for the rise of 3.3 per cent in HLL, the Sensex would have fallen further. According to VVLN Sastry at Khandwala Securities, "The Sensex would have fallen by 80 points compared to its previous close, had it not been for the rise in HLL". HLL went up to touch its new all-time high of Rs 2810, driving the Sensex coupled with Ranbaxy moving to a high of Rs 910, before falling during the fag end of the session. "However, counters like Hind Lever and ITC are the clear exceptions following delivery-based buying", said Chetan Shah at Shailesh Merchant and Brokers.

"The activity in the markets is stock-specific as the first quarterresults pour in. Of late, FII buying interest seems to be tapering with the domestic institutions in a mood to sell. If the Sensex continues at this level for Monday and Tuesday, the markets will see a correction of 300-400 points,'' said Dilip Bhat, director, Network Investment and Financial Consultants.

On the technical side, Malay Sameer of Apple Financial Securities said: "The momentum indicators of the index are showing an overbought position and have started looking bearish. The MACD indicators are also showing a downward correction. The markets are expected to test the level of around 4,500 and take support on the uptrend line there. In the medium-term, the outlook for the market is bearish and the trend upwards may begin after the downward correction at 4,500 levels".

Reflecting the trend, the BSE-30 share sensitive index resumed higher at 4,751.98 and improved further to a high of 4,769.34 down on profit-taking to the day's low of 4,663.12, before closing at 4,672.12 from yesterday's close of4,728.78, registering a loss of 56.66 points or 1.20 per cent.

NSE opened at 1350, went up to touch a high of 1367 and a low of 1339.60 to close at 1342.95 registering a net marginal loss of 6.25 from its previous close of 1349.20. The pharmaceutical counters were weak on Friday, while the software shares perked up, led by the Satyam Computer counter. Pivotals remained steady with Reliance in a narrow range, State Bank retreated on unwinding of long positions, ITC was steady at Rs 1025-level.

Rajiv Choksi, chief dealer at Kisan Ratilal Choksey said that looking at the net long position of around Rs 1500, the badla rates will be high, ranging between 22 and 24 per cent.