The current fall however is not a surprising one. As it had broken important levels last week, the upmove on Monday was clearly of a corrective nature.

For this reason, sustaining the uptrend was difficult. The outlook continues to remain negative for in the short run. In fact, the chances of accelerating the downtrend are likely.

For future, from index point of view, minor base is at 4,050 points and below this, the downtrend may gather momentum.

On the upper side, the level of 4,220 remains major hurdle and whenever the Sensex makes an attempt the rally, selling is likely around this level.As for individual stocks, the fall on HLL counter showed a slowdown. The position however is far from impressive, and the stock will face strong resistance on every upmove. The position will further weaken below Rs 210.

In case of ITC, the fall may accelerate below Rs 720 where it has a minor support. Immediate support on the upper side is at Rs 750. Reliance has shown a sideway movement and the position will weaken below Rs 338. On the upper side, it has a strong resistance at Rs 350.

The position of SBI however is far from impressive. It has a strong resistance at Rs 188. On the downside, it has a support at around Rs 175.

MTNL has shown a bounce. For those who have an optimistic outlook, the level of Rs 112 can be used as a stop loss. It has a strong resistance at Rs 128.

The position of counters like L&T, ACC, Tisco and Telco is weak, and a negative move is likely on these counters.

Among the tech stocks, Infosys has a strong resistance at Rs 7,600 and unless this level is crossed, one should avoid long positions. For Zee Tele, strong resistance is at Rs 442, and outlook will improve only above this level. It has a support at Rs 400. Satyam Comp has a resistance at Rs 520 whereas the support for the stock is at Rs 440. Overall, the market outlook is negative and one should continue to avoid long positions at this juncture.