The American Markets have closed slightly higher. The Asian Indices are trading flat. We can expect a weak opening for our markets today. The markets have a strong support at 4830 levels, which if breached on the downside can take the Nifty to much lower levels. Hence, we can expect a negative closing for our markets today. We can see that the markets have closed at 4857 levels yesterday. We can notice on the daily charts that the markets have broken the strong support at 4900 levels and is currently trading at much lower levels. We can also notice on the longer term charts that the markets have also broken the psychological 200 Day Moving Average at 4960 levels. We can observe that in the past whenever the 200 Day Moving Average has been broken, the markets have always drifted to much lower levels. Hence, the markets should move slightly lower to 4750 levels in the short term.

The BSE Power Index closed at 3414 levels yesterday, which is (-8.61%), below its previous close. We can also notice that this index is currently trading in blue sky territory, signifying that the current levels have never been traded on the downside. Hence, the Fibonacci projections indicate that this index should move much lower to 3200 levels in the short term. We recommend a sell in GMR Infra and Suzlon in this sector.