The American Markets have closed very strong.The Asian Indices are trading with a positive bias.We can expect a positive opening for our markets today.The markets have a strong resistance at 6300 levels,which if breached on the upside can take the Nifty to much higher levels.But,we could expect slight profit booking towards the close.Hence,we can expect a positive closing for our markets today. We can see that the markets have closed at 6207 levels yesterday. We can also notice on the daily charts that the markets have retraced approximately to 6200 levels, which is the 23.6% Fibonacci retracement from the 5676 lows made on 19/12/2007 to the 6357 highs made on 8/1/2008. Therefore, the markets are now likely to move higher as the strong support at 6200 has held very strongly since the past few trading sessions. Hence, the markets should move higher to 6300 levels in the short term.

The BSE Oil & Gas Index closed at 14126 levels yesterday, which is (2.13%), above its previous close. We can also notice that this index is currently trading very close to its all time high levels at 14213 levels. Hence, we expect the short term resistance at 14213 levels to be broken and the index should move higher to 14700 levels in the short term. We recommend a buy in Indian Oil and Essar Oil in this sector.