We saw that the Nifty opened positive in the morning session at 5900 levels. After that, the markets gained further strength and was trading at 5940 levels. There after, the afternoon session saw a sharp dip for our markets to the 5880 levels. But, towards the closing session the markets were able to sustain, at its high levels and closed firm. Hence, the Nifty closed slightly positive for the day at 5901, (0.54%) above its previous close. But, the advance: decline ratio was flat at 593:592.

The American Markets have closed very strong. The Asian Indices are also trading at higher levels. We can expect a gap up opening for our markets in the morning session and the all time highs at 5976 would be breached instantly. After that, the markets will make a further upmove and trade at 6150 levels on the upside, where it would face some resistance .Hence, the markets will have a very strong closing today. We can see that the markets have closed today, at slightly higher levels, at 5901 today. We can also notice on the daily charts that the markets are consolidating in the 5850-5950 range for the past two trading sessions. But, this consolidation has come, after a sharp run for our markets from the 5070 to 5900 levels. Hence, we expect this consolidation to get over and the markets should move to 6300 levels in the short term.

The BSE PSU Index closed at 9628 levels today, which is (1.14%) above its previous close. We can see that this index is currently trading at its all time high levels. This index, was also able to bounce back very sharply, from its short term support at 8700 levels last week. Hence, we expect this sector to move to the 10000 levels in the short term. We like Neyveli Lignite & Engineers (India) in this sector.

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