The Defty has traded in a narrow range for the last two weeks. This is contrary to the view we had expressed. This can be a sign of impending weakness. We prefer to be on the sidelines until clarity emerges.

The PSU index has failed to take off after an attempt at recovery. This does not augur well for the index. We can see a decline over the medium term. A move below 9000 can cause damage to the trend.

The medium term trend in the Bankex has moved below its support levels and seems to suggest weakness ahead. A move above 13500 is required for strength to be indicated. Until then the trend should be considered as weak.