Sector Watch Outlook by PINC Research
CNX Defty still remains in a downtrend. A move above 4350 may lead to a trend reversal in which case higher targets could be tested. As long as the support of 4150 is held, one could keep a positive bias to this index.
BSE PSU had a breakdown from the trading range and declined for the major part of last week. It is currently standing near an important support of 8400. A breach of 8400 can cause further declines till 8200.
The BSE Bankex slipped which was a bit contrary to our projected view. 12000 remains a good support. A bounce back closer to 12500 is possible if this support level is held in the near future.
BSE IT continues to drift sideways. It may continue moving in a trading range of 6100 to 5950 in the coming week. A breakout from this range will lead to a sustainable directional move.
BSE Cap Goods bounced sharply after testing the lows of 12400. This move may have translated in the downtrend getting reversed and it can see further upsides of 13500 or higher in the coming week.
BSE Auto index had a double bottom when it bounced from the lows of 8900. Its short term trend still remains down however an upmove above 9300 can warrant a change of trend.