Medium term technicals still suggest that weakness may persist for a while however oversold technical indicators suggest that sharp declines may not be round the corner. Hence, it would be prudent to keep an eye on a trend reversal. It is a wait and watch as we observe this trend reversal.

BSE PSU declined like most other sectoral indices last week. Coming week may see the index drift with a negative bias.

BSE Bankex also slipped lower last week and may continue to drift lower in the coming week. Important support on the downside is at 11350 and it faces stiff resistance at 12850.

Selling pressure also resulted in the IT index closing lower last week. Close below 6040 may witness index sliding lower to 5900 level.

BSE Cap appears to be one of the weakest amongst sectoral indices. A decisive move below 12130 can see it test 11900 or lower.

BSE Auto Index is one of the few indices that appears to be the outperforming sector in the current decline. Strong support exists at 8145.