The American Markets have closed extremely weak. The Asian Indices are also trading at lower levels. We can expect a gap down opening for our markets in the morning session. The next support on the downside at 5700 will also be under threat today. But, a slight pull back can be expected in the afternoon session ,which might not sustain for a long time. Hence, we expect another weak closing for our markets today. We can see that the markets have closed at 5777 levels yesterday. We can also notice on the daily charts that the markets have yesterday, convincingly broken below 5880 levels, which is its 20 Day Moving Average. We can also observe that the markets are now trading very close to its next short term support at 5700 levels. If this short term support at 5700 levels is broken, the markets can slide down to much lower levels. Hence, we expect our markets to drift slowly downwards to 5600 levels in the short term.

The BSE Metal index closed at 18324 levels yesterday, which is (-7.28%), below its previous close. We can also notice that this index has got a strong support at 18000 levels, which looks likely to be tested in the short term. Hence, we expect this index to move much lower to 17800 levels in the short term. We recommend a sell in Tata Steel and Sesa Goa in this sector.