CNX Defty - Our stance remains the same as earlier. Medium term technicals suggest a neutral view at this stage but oversold technical indicators suggest that bearish fatigue may be setting in. Even if a decline is underway, it may lack significant directional force and may at best be drifting downward momentarily. It is a wait and watch as we await the trend change that can occur.

BSE PSU witnessed a sharp pull back closer to 8400 level last week. This indicates that the chances of any serious downside may be minimal. The time to have a cautiously optimistic stance may have come.

The BSE Bankex inspite of the breach of the important support of 12100 did not see any serious downsides. This is indicative of accumulation occuring at lower levels.

BSE IT Index was one of the last weeks strongest underperformers amongst sectoral indices. Acceleration of downtrend will occur below 5900 which also coincides with its 200 DMA.

The BSE Cap Goods index had another week of weakness but its downtrend may be tiring closer to 12250 levels. There is a possibility of a trend reversal at this stage.

BSE Auto Index like most other indices is moving sideways with a negative bias. Bears should exercise caution at current levels.