We saw that the Nifty opened flat in the morning session at 5610 levels. After that, the markets were trading in a narrow range of 50 points from 5600-5650 levels. But, the afternoon session saw a sharp up move for our markets beyond 5650 levels and the markets scaled higher to 5750 levels. After that, a small amount of profit booking set in and the markets cooled off slightly towards the close. Hence, the Nifty closed very strong for the day at 5695, (1.39%) above its previous close. The advance: decline ratio was also very positively biased at 821:367.

The American Markets have closed very strong. The Asian Indices are currently trading at very high levels. We can expect a gap up opening for our markets in the morning session. The markets will then make an attempt to breach the next upward resistance at 5850 levels. But, the afternoon session can see some profit booking at higher levels. Hence, overall the markets will close very strong for the day. We can see that the markets have closed at 5695 levels yesterday. We can also notice on the daily charts that the markets have retraced approximately to 5680 levels, which is the 38.2% fibonacci retracement, from the 6011 highs made on 1/11/2007 to the 5477 lows made on 12/11/2007. We also know, that it is very common for the markets to retrace to, at least to the 61.8% levels in such pullbacks. Hence, we expect the markets to move towards the 5810 levels in the short term.

The BSE Power index closed at 4527 levels yesterday, which is (3.04%) above its previous close. We can notice that this index has been recently introduced from the past few trading sessions. Hence we don''t have enough charting history on this sector. But ,with the limited data available to us indicates that this index is displaying a lot of strength and can move to 4700 levels in the short term. We like Areva and Torrent Power in this sector.

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