MARKET VIEW:

We can see that the markets have closed at 5322 levels yesterday. We can notice on the daily charts that   the markets are facing very strong resistance at 5470 levels, which also happens to be its 50 Day Moving Average. The markets have now also formed a minor support at 5060 levels, which looks unlikely to be tested in the short term. We can also notice that the Stochastics and RSI indicators are showing overbought levels in the short term, which indicates that the markets are still looking weak in the short term. Hence ,the markets should move lower to  5150 levels in the short term.

SECTOR INDICES:

BSE  IT (3814)

The BSE IT Index closed at 3814 levels yesterday, which is (-5.59%), below its previous close. We can also notice that this index has got a minor support on the downside at 3700 levels, which looks likely to be tested in the short term. Hence, we expect this index to move lower to between 3600 levels in the short term. We recommend a sell in I-Flex and Hexaware Tech.  in this sector.

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