We saw that the Nifty opened with an upside gap in the morning session at 5840 levels. After that, the markets gained further strength and was trading higher at 5900 levels. There after, the afternoon session we saw some sideways movement for our markets and the markets consolidated in the 5880-5910 levels. But, towards the closing session the markets remarkably, held onto its morning gains and closed strongly. Hence, the Nifty closed very strong for the day at 5906, (3.57%) above its previous close. The advance: decline ratio was also very positive at 703:489.

The American Markets have closed strong. The Asian Indices are currently trading with a negative bias. We can expect a flat opening for our markets in the morning session. After that, the markets will try to test the 6000 levels in the afternoon session. But, later on some profit booking can be expected and we can close slightly positive for the day. We can see that the markets have closed at its all time high of 5906 levels today. We can also notice on the daily charts, that the short term upside projection for the markets from the 5070 lows made on 22/10/2007 to the 5922 highs made on 29/10/2007 at 23.6% is 6150 levels. Since, our markets have recently reversed back from the 5070 lows, made last week very sharply, we can expect some more upside movement for our markets in the short term. Hence, we expect the markets to move to 6150 levels in the short term.

The BSE OIL & Gas Index closed at 11659 levels today, which is (5.01%) above its previous close. We can see that this index is currently trading at its all time high levels. This index, was also able to bounce back very strongly, from the 9870 lows made during the recent market correction. Hence, we expect this sector to move slightly higher to 12000 levels in the short term. We like ONGC & Aban Offshore in this sector.

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