The rally has helped the depressed sentiment but the medium term outlook will take some time to change. For the Sensex, the next resistance is at around 4350 points.

Meanwhile, the uptrend on the HLL counter showed a slowdown on Monday. The immmediate support for the stock is at Rs 2,550. The next major base is at Rs 2,200. Reliance showed a smart move, and will attract huge buying above Rs 350. After Rs 365, it will enter into resistance-free area. On the downside, it has a small base at Rs 325, and the next support is at Rs 310.

Zee Tele has also crossed its immediate top, and the upmove may continue. For Satyam Computers, outlook will show an improvement only above Rs 2,300. Infosys has formed a double bottom, which can be used as a reference point for all long positions. On the upper side, it has a strong resistance at Rs 6300.

ITC has also shown signs of slowdown. After Rs 665, the next major support for the stock is at Rs 630. On the upper side, the immediate resistance is at Rs 680. NIIT has also formed a double bottom at Rs 1560. This can be used as a stop loss for all medium term positions.

Other counters like ACC, SBI, MTNL, and L&T have shown a corrective move on the upside, and a downward correction is likely in the near future. As for the software sector, mixed trend was witnessed on Monday. Few counters have shown a strong close. HFCL appears to be the strongest. The stock is above its short-term resistance and till Rs 1050 level, no major resistance exists. For Silverline, the outlook will improve above Rs 420. Global Tele has also formed a double bottom.

Among the other counters, HDFC is likely to do very well as it has entered into a resistance-free area.