As the level of 4300 points was an important support level, now it will act as a first resistance. If the index opts for a lower top, which is likely, it would show a bounce in the near future. The fall on the index could have been very sharp had counters like HLL and Reliance participated in the fall in a big way. Both counters lost less than 2 per cent. But the latest fall has certainly affected the sentiment for old economy counters also. With the date of budget coming closer, the volatility is likely to continue in old economy counters. As for tech counters, the position has worsened. HLL managed to remain in a narrow range and has a base at Rs 214. The short-term position will weaken only below this level. The next base for the counter lies at Rs 205 and below which the position will weaken drastically.

Reliance too lost less than 2 per cent on Friday. The level of Rs 408 can be used as immediate stop-loss for long positions. The outlook will improve above Rs 420. Stocks like MTNL and Tata Tea have broken their important support levels, which is not a healthy sign for their medium-term positions.

A corrective rally however is not ruled out. Bhel, SBI and Tisco may also witness a corrective move. As for ITC, the level of Rs 831 is an important resistance, and unless this level is crossed, the position will not improve drastically. Other cement counters have also shown a fall. As for tech counters, the outlook continues to remain negative. Zee Tele, which attracted strong buying in the last two days, failed to sustain at higher levels and is below its short-term supports. The fall is likely to gather momentum on this counter. As for Infosys and Satyam Comp also, the outlook remains negative. Overall, with the budget being just two trading sessions away, the technicals will have a lesser role to play and the speech of the finance minister will have a major weightage and determine the direction.