The American Markets have closed positive. The Asian Indices are trading with a positive bias. We can expect a flat opening for our markets in the morning session after yesterdays weak closing. The markets will then try to breach the next upside resistance at 5850 levels .But, it will face some selling pressure at 5850 levels and cool off slightly towards the close. Hence, we expect our markets to close slightly positive for the day. We can see that the markets have closed at 5742 levels yesterday. We can also notice on the daily charts that the markets are currently trading very close to 5700 levels, which is its strong short term support. We can also observe that the markets have been continuously falling from its top at 6185 levels for the past few trading sessions and appears to be oversold at least in the short term. Therefore ,a slight pullback can be expected from the 5700 levels in the short term. Hence, we expect our markets to pullback slightly higher to 5900 levels in the short term.

The BSE Consumer Durables index closed at 6060 levels yesterday, which is (1.12%), above its previous close. We can also notice that this index has got a strong support at 5900 levels, which looks unlikely to be tested in the short term. Hence, we expect this index to move slightly higher to 6250 levels in the short term. We recommend a buy in Videocon Ind. and Lloyd Elec. Engg. in this sector.