We saw that the Nifty opened with a gap down in the morning session at 5540 levels. After that, the markets dipped downwards and was trading at 5500 levels. Later on towards noon, the markets were consolidating in a narrow range between 5500-5530 levels. After that, the markets broke above this narrow range at 5530 levels and went higher to 5600 levels. Hence, the Nifty closed negative for the day at 5617, (-0.81%) below its previous close. The advance: decline ratio was also very negatively biased at 347:837.

The American Markets have closed weak. The Asian Indices are currently trading flat with a slight negative bias. We can expect a subdued opening for our markets in the morning session. But, the 5550 levels should provide a good intra day support for our markets. Later on, in the afternoon session we can expect a slight pull back rally to higher levels. Hence, we expect to close flat to slightly positive for the day. We can see that the markets have closed at 5617 levels yesterday. We can also notice on the daily charts that the markets have formed a candlestick pattern known as ''hammer'', which signifies that the markets have bottomed out temporarily, at 5600 levels for the short term. Further, the pattern also suggests that we can get a small bounce back from 5600 levels in the short term. Hence, we expect the markets to bounce back to 5700 levels in the short term.

The BSE FMCG index closed at 2057 levels yesterday, which is (2.50%) above its previous close. We can see that this index is currently trading close to its medium term support at 2000 levels. This index, has thus currently bounced back from its strong support at 2000 levels and going forward can move to 2150 levels in the short term. We like Bata and Dabur (I) in this sector.

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