With the latest move, the index has managed to move above its first resistance of 4206. In the process, it has also broken a 7-month falling trendline. This is a positive indication for its short-term health and the level of 4000 will now act as an important support. It has a minor resistance at 4332 points. While the sentiment was positive for new economy, Infosys could not gain significantly. It has made a minor base at Rs 6,750, which can be used as stop-loss for long positions.

Satyam Comp attracted strong buying during the last one hour and showed a firm close. The level of Rs 415 can be used as stop-loss for long positions. The stock is above all short-term hurdles. Zee Tele also closed firm. Immediate resistance for the counter is at Rs 275. Since the rally is quite sharp from the low of Rs 222, it may show a sideways movement. Meanwhile, HLL remained dull. Its position may weaken below Rs 196. Immediate resistance lies at Rs 210. The performances of Rel Petro and Reliance were impressive. Rel Petro is above its medium-term resistance levels and the next hurdle for the counter lies at around Rs 76.

In case of Reliance, the immediate support is at Rs 368, which should be used as stop-loss for long positions. SBI remained dull and the position is likely to improve above Rs 224. MTNL showed a smart rally. The next major resistance for this counter is at around Rs 192. Bhel also did well and the outlook remains positive.

While Tisco remained firm, ITC moved in a narrow range. The performance at the cement counter was impressive. Grasim showed further improvement and gained 4 per cent. Other stocks like L&T and GACL also did well. While the undertone for the cement counter is bullish, a corrective move is not ruled out.

Overall, the sentiment for old as well new economy stocks has improved drastically but profit-booking is likely at higher levels. Hence, one should be cautious of fresh long positions at this juncture.