If one were to consider the current position of major counters like HLL, ITC, Infosys, NIIT, Reliance, and SBI, the Sensex is likely to show some more correction in the coming days. The first support for the Sensex is at 4545 points. If the Sensex breaks this support, the next target could be somewhere around 4300 levels.

Hindustan Lever had a dream rally of nearly 20 per cent this week. However, a correction is around the corner. The number two counter, ITC, is extremely bearish and a revival seems difficult from current levels. The performance of Infosys will mainly depend on the GDR market. The domestic chart looks weak and there is enough room for a further correction. SBI is also weak, but the fall will accelerate onlyonce it breaks the Rs 265 level. As for Reliance, the support exits at Rs 172. Below this level, the stock would fall at a faster pace.

Among the PSU stocks, MTNL has a support at Rs 216. For Bhel, the support exits at Rs 274. NIIT is extremely weak and may fall further. Overall, as the outlook for the most of the pivotals is negative, the Sensex is unlikely to show an uptrend. Among the Tata counters, Tata Tea is the weakest and may fall further. The same can be said about other counters like Telco, ACC, and Tisco. While support for ACC exits at Rs 210, Telco may find support at Rs 259. Tisco should get support around Rs 135.

Satyam Computers was the only software stock which showed some strength on Friday. In fact, it has given a fresh break-out and one can expect it to go up further. Pentafour Software has support at Rs 1172. Below this level, it may attract short-sellers. Digital Equipment may show some correction before starting its northbound journey once again.

Silverline and Rolta are expectedto move sideways. One can also expect correction to continue on counters like Arvind Mills, Bajaj Auto, Ballarpur Industries, BASF, Ceat, Crompton Greaves, Esab India, Grasim, Oriental Bank of Commerce, Raymond, and Tata Chemicals. However, counters like Atlas Copco, Bharat Forge, Corporation Bank, Dabur, Hindliver Chemicals, and IPCL are expected to remain firm.

In fact, IPCL has given a fresh break-out on Friday by moving about its long term resistance. One can expect a sharp rally on this counter. Investment can be made for medium-to-long term basis on this counter.