Benchmark indices were under pressure and lost nearly all of yesterday's gains. The Sensex slipped below the 10,000 mark and the Nifty fell below the 3000 level. Realty, capital Goods, power, oil, banking, technology and metal stocks are weak.

Neppolian Pillai of Modern Share and Stockbrokers, said, “The market has fallen from 3,170 levels, which is the maximum resistance area for the Nifty and the market is very close to its 50-hour moving average. The last time, the market fell from 3,240 to 2,860. This 50-hour moving average then was about 2,852 and that supported the market to bring it back upto 3,170 levels.” He further said, “Now that 50 hour right now is about 2,960, we are at about 2,970. We are just 10-point away from there.” Pillai hopes that we hold that level; however, in case we don’t, then he thinks we are going close to about 2,860–2,750 on the downside.

Pillai feels that if one buys at 2,970 and puts a stoploss below 2,950, it could work. He said if it doesn’t work out, it will not really bother one. He feels that 20-points on the Nifty now-a-days is nothing, so one could try out at this level to go long with a 20-points stoploss at 2,950.

Technical Analyst, Ashwani Gujral, said, “If one draws a trend line through the uptrend that started from 2,250 going to 2,860 that got violated at 3,050–3,060. Since the uptrend has ended prematurely there is no question of being long. In fact, one should get out of longs and the market is preparing to retest 2,860, which if broken would then spell further trouble and then the market would go back and retest the previous lows.”

Gujral feels that people should have shorted around 3,050–3,060. In case there is any rally back to those levels, it’s a good trade going short. However, going short after 600 point decline is not such a smart idea, he said.