We saw that the Nifty opened weak in the morning session at 5865 levels. After that, the markets were trading in a narrow range of 35 points from 5840-5875 levels. But, the afternoon session saw our markets trading slightly higher at 5915 levels. After that, towards the close, the markets suddenly started drifting downwards and most of the intra day supports were broken on the downside. Hence, the Nifty closed very weak for the day at 5780, (-2.15%) below its previous close. The advance: decline ratio was also slightly negative at 542:655.

The Dow has closed slightly higher yesterday. The Asian Indices are all trading at lower levels. We can expect a negative opening for our markets after yesterdays weak closing. The markets will then try to bounce back from lower levels and make an attempt to move above the resistance at 5830 levels. But, lot of selling pressure will emerge around 5830 levels and markets will drift down further. Hence, we expect a weak closing for our markets. We can see that the markets have closed at 5780 levels yesterday. We can also notice on the daily charts that the markets had formed a japanese candlestick pattern last friday known as ''hanging man'' which implies a bearish reversal is soon to be experienced by our markets. We have now got a confirmation for this bearish reversal, by closing negative for the past two days. Therefore, we can expect some more downside for our markets in the short term. Hence, we expect our markets to drift slightly lower to 5700 levels in the short term.

The BSE PSU index closed at 10231 levels yesterday, which is (-2.95%) below its previous close. We can also notice that this index has got a strong support at 10,100 levels in the short term ,which seems likely to be tested in the short term. Hence, we expect this index to move slightly lower to 10100 levels in the short term. We are seeing further weakness in Container Corporation and MTNL in this sector.

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