For Sensex, the fall has been very sharp from a peak of 5050 points, and one could expect a corrective move on the upside in the coming days. The medium term outlook would depend on the strength of the corrective move. On the upper side, the level of 5050 points remains a major resistance, and outlook will improve drastically above this level.

As for individual stocks, HLL has remained weak but the fall may show a slowdown. In the case of Reliance, a move above Rs 370 would be good for its medium term health, and fall may accelerate below Rs 347. As for ITC, the drop has been sharp, and the stock is below its short-term support. For this stock, unless the level of Rs 800 is crossed, one should avoid fresh buying.

The stock may remain weak. Meanwhile, Reliance Petro may also show an upward correction.

As far as the position of Satyam Computers is concerned, the stock has take a support at Rs 2750, and a corrective move is likely. However, if the level of Rs 2750 is broken, the downtrend may get accelerated.

For Zee Tele, the outlook will improve above Rs 520. It has made a small base at Rs 490 which can be used as stop loss for long positions. Meanwhile, L&T and Bhel may also show a corrective move as the fall on these counters has been more than 20 per cent from their respective peak. A corrective move is expected on these counter. ACC has also dipped below its first support, and the outlook remains negative. SBI is also below its medium term support, and the outlook appears negative. While a large number of pivotals have broken their short-term supports, the fall on software counters has been significant, and since the fall has shown a slowdown, a corrective move is likely. The rally may occur on counters like Infosys, Satyam Comp, Wipro, SSI, and HFCL. One can take a change on these counters.