From the index point of view, the level of 4200 will continue to act as the first resistance and the level of 4045 points is the first minor support. Among the new economy stocks, Infosys was one of the worst hit. The stock lost 4 per cent. While the next major base for the stock is at around Rs 6,000, as the fall is of more than 14 per cent, a bounce is not ruled out.

But the main trend will continue to remain negative for the stock.Satyam Comp also dipped but the fall was not much. The stock has made a base at Rs 338, which should be used as an immediate stop-loss. Zee Tele meanwhile recovered sharply and it may continue. The level of Rs 275 is the stop-loss for long positions. Among other heavyweights, the performance of HLL was far from impressive. After showing a strong opening, the stock dipped sharply. In the process, it broke its immediate base of Rs 200. The formation of a double-top in its intra-day chart at Rs 204 is a negative signal. This level will be a major resistance in the short-run. The level of Rs 191 is an immediate base for this counter.

ITC dipped but did not break its first base of Rs 885. Reliance has also taken a support at Rs 336. This should be used as stop-loss for long positions. Bhel failed to attract buying. The outlook for the stock will improve drastically above Rs 164. Cement stocks also showed a sideways movements. For L&T, the level of Rs 202 should act as the first base. For ACC, the stop-loss is at Rs 157. As for Grasim, the stop-loss is at Rs 276.

As for Gujarat Ambuja, the short-term position will improve further above Rs 172. The level of Rs 165 should be used as stop-loss. Among other counters, Tisco moved in a narrow range, and a positive trend is expected in the near future.

Overall, while new economy stocks may show a recovery, the old economy stocks may to show sideways movements. Long positions should be avoided in new economy.