NIFTY COMMENTS:

We saw that the Nifty opened weak in the morning session at 5525 levels. After that, the markets continuously drifted downwards to 5470 levels. The markets then had a small pullback to 5560 levels, which proved to be a major intra day resistance for our markets. Thereafter, in the afternoon session, the markets again started moving downwards, on the back of heavy selling to 5400 levels. But, towards the close the markets had a smart bounce back from the 5425 levels and was trading at 5550 levels. Hence, the Nifty closed slightly weak for the day at 5520, (-0.75%) below its previous close. But, the advance: decline ratio was very negatively biased at 251:946.

MARKET VIEW:

The American Markets were closed yesterday because of Thanksgiving  Day. The Asian Indices are trading with a positive bias. We can expect a positive opening for our markets after yesterdays late pullback rally. The markets will then make an attempt to scale the next upside resistance at 5600 levels. But, some profit booking can be expected at 5600 levels and the markets can cool off slightly towards the close. Hence, we expect to close slightly positive for the day. We can see that the markets have closed at 5520 levels yesterday. We can also notice on the daily charts that the markets have today formed a Japanese candlestick pattern known as ''hammer'', which signifies that the markets have at least made a temporary bottom for the short term. The ''hammer'' pattern also suggests that a small pullback from the current levels is very much possible. Hence, we expect our markets to bounce back to 5600 levels in the short term.

SECTOR INDICES:

BSE BANKEX (10406)

The BSE Bankex index closed at 10406 levels yesterday, which is (1.75%), above its previous close. We can also notice that this index has bounced very strongly from its short term support at 10100  levels. Hence, we expect this index to move slightly higher to 10700 levels in the short term. We like  Bank Of Baroda and State Bank  in this sector.

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