The outlook for the index is far from impressive. It has made a strong resistance at 4280 points which close to its major hurdle of 4300 points. On the downside, a minor base is at 4190 points. The next support for the index exists at 4120 points.

Individually, HLL has shown a dull movement, and outlook will improve only above Rs 242. ITC also took a resistance at 775. This has become a major hurdle for the stock, and unless this level is crossed, the short-term outlook will not show any major improvement. On the downside, the next major support for the stock is at Rs 705. A minor base is at Rs 735.

Meanwhile, Reliance has also dipped below its first base of Rs 335 which is not a healthy sign. The next base for the stock is at around Rs 325. It has made a strong resistance at Rs 344 which should be used a reference point for short positions.

Meanwhile, Satyam Computers did touch its major hurdle of Rs 2,500 but failed to remain above this level. For this counter, outlook will improve only above this level.

The downtrend is likely to gather momentum below Rs 2,350. Zee Tele also remained below its resistance of Rs 442, and has dipped below its first short-term support. The next major base for the stock is at around Rs 400, and the fall may gather momentum below this level.

Meanwhile, the outlook for L&T, Bhel, Tisco, Telco, and SBI has weakened further. These counter are unlikely to show major improvement in the short-run.

While the Sensex lost 54 points, the sentiment for the software sector was negative. A large number of stocks are below their short-term base, and appear weak.One should avoid long positions on these counters. Stocks like Dig Equipment, Silverline, DSQ Soft, HCL Tech, Rolta, SSI and Pentamedia appear very weak