We saw that the Nifty opened with an upside gap at 5502 levels in the morning session. After that, the markets gained further strength to 5520 levels. There after, the afternoon session saw some more strengthening for our markets and the markets were trading in the 5600 levels. After that, the markets then moved further upwards towards the close and was trading at 5660 levels. Ultimately, the Nifty closed very strong for the day at 5670, (+4.46%) above its previous close. The advance: decline ratio was also very positively biased at 854:290.

American markets have closed very weak. The Asian Indices are trading at lower levels. We expect a positive opening to our markets after yesterdays strong rally. After that, the markets will make an attempt to test the next resistance at 5750 on the upper side. But, some profit booking can''t be ruled out in the afternoon session. Hence, we will close slightly positive for the day. The markets have closed at its all time high levels of 5670 today. We can see on the daily charts that the market retracement of 23.6% from the 4485 lows made on 18/9/2007 to the 5682 highs made on 15/10/2007 is 5417. We have also seen a vertical rise for our markets from 4485 to 5670 levels without any major consolidation or correction. Hence, we expect some consolidation for our markets to the 5400 levels in the short term.

The BSE Metal sector index has closed very strong at 16200 levels today, which is (+9.16%) above its previous close. We, also notice that this sector is moving in a rising trendline from 14481 levels for the past week. Hence, we expect this sector to move towards 17600 levels in the short term. We like SAIL and Sesa Goa in this sector.

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