After posting a heavy loss on Monday, the 30-share index BSE Sensex belled the day at 14,618.98, down 46.94 points, regardless of positive worldwide signals.

PSU, automobile and metal stocks led declining charts, whereas IT and banking gained marginally.

Midcap and Smallcap index also fell down by 0.51% and 1.16% respectively.

At 10:09 a.m., Bombay Stock Exchange's Sensex was at 14,683.93, up 18.01 points, while National Stock Exchange's Nifty was trading at 4,394.05, lower by 35.85 points.

The top gainers in the 30-share index included Grasim Industries (1.80%), SBI (1.65%), TCS (1.34%), Infosys Technologies (1.24%), HDFC (0.88%), and RCom (0.82%).

On the other hand, the major losers in the Sensex were JP Asso (3.59%), Ranbaxy Lab (2.48%), Mah & Mah (2.47%), Sterlite Industries (India) (2.04%), Reliance Capital (2%), and Maruti Suzuki India (1.63%).

In overseas market, Asian stocks gained after Nobel prize-winning economic expert Paul Krugman stated that the US recession may finish during the existing year.

Japanese benchmark index Nikkei dropped 103.65 points to trade at 9,761.98. Hong Kong`s Hang Seng index declined 292.40 points to trade at 17,960.99 and China`s Shanghai Composite fell 28.39 points to trade at 2,739..94. (At 10.05 a.m, IST).

According to Nirmal Bang, the stock markets will saw selling as the markets has to consolidate and make a base before giving a new breakout.

As they mentioned in their yesterday’s report that around 4650, Nifty faces very strong resistance and in today’s session, the Singapore Nifty SGX made a top of 4650 during the early hour of trade and corrected from that point.

Nirmal Bang has indicated some of the historic data from where nifty has corrected sharply. On 24 July 07, Nifty corrected from the top of 4648 upto 4002 on 17 Aug 07, on 18 June 08 nifty corrected from 4679 upto 3790 on 16 July 08, on 12 Aug 08 4649 upto 2252 on 27 Oct 08.

During this entire uptrend/downtrend, investors have witnessed that 3800 looked to be the major support level.

For today’s intra-day trading, support for nifty stood at 4360 and resistance is placed at 4530. Buying can be done if Nifty sustains above 4530 from an intra-day point.

Fresh weakness can be seen if Nifty trades below 4360, next level could be 4220 – 4080 on the downside.

Investors should wait for a healthy correction and then make entry into the stock market and for trader’s trade according to the levels mentioned.