The American Markets have closed slightly weak. The Asian Indices are trading flat. We can expect a flat opening for our markets as we will be taking cues from the Asian markets. But, our markets will face some upside resistance at 5250 levels. We can expect, slight profit booking at higher levels, but the intra day support at 5100 should hold for the day. Hence, we expect to close flat to slightly negative for the day. We can see that the markets have closed at 5167 levels yesterday. We can notice on the daily charts that the markets have retraced to 5178 levels, which is the 38.2% fibonacci retracement from the 6353 highs made on 8/1/2008 to the 4448 lows made on 22/1/2008.The markets are thus poised for a further downmove to the 23.6% retracement levels in the short term, as the resistance at 5400 levels has not been breached on the upside since the last few trading sessions. Hence, the markets should move lower to 4900 levels in the short term.

The BSE Oil & Gas Index closed at 10684 levels yesterday, which is (-4.45%), below its previous close. We can also notice that this index has got a support on the downside at 10200 levels, which seems likely to be tested in the short term. Hence, we expect this index to move lower to 9900 levels in the short term. We recommend a sell in Indian Oil and Petronet LNG in this sector.