CNXIT : What's next

As expected in our post on 7th May, CNXIT corrected below 15700. It has already broken trend line support on hourly chart. Index is expected to trade weak to sideways till the time it is trading below 16100. Incidentally, 16060 is 38.2% retracement support of entire correction which coincides with resistance line. Hourly close above 16100 will negate the downtrend . If it doesn't break 16100 and then falls back to previous bottom, then we might see deeper correction towards 15200-15250 zone.

We''ll remain bearish with stop loss above 16100.