The American Markets have closed slightly higher. The Asian Indices are trading with a negative bias. We can expect a flat opening for our markets today. The markets have a strong support at 5080 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 5133 levels yesterday. We can notice on the daily charts that the markets have retraced to 5130 levels, which is the 50% fibonacci retracement from the 4449 lows made on 22/1/2008 to the 5545 highs made on 4/2/2008. We also know that in moderately bearish markets prices can retrace upto 61.8 % retracement levels. Hence ,the markets should move lower to 5000 levels in the short term.

The BSE Oil & Gas Index closed at 10668 levels yesterday, which is (-4.41%), below its previous close. We can also notice that this index has got a minor support on the downside at 10450 levels, which looks likely to be tested in the short term. Hence, we expect this index to move lower to 10000 levels in the short term. We recommend a sell in Essar Oil and Petronet LNG in this sector.