We saw that the Nifty opened with an upside gap in the morning session at 5865 levels. After that, the markets were trading in a narrow range of 25 points from 5825-5850 levels. But, the afternoon session saw a sharp up move for our markets beyond 5850 levels and the markets scaled higher to 5900 levels. Later on, the markets again traded in a sideways range at 5875-5900 levels, before making another strong up move towards the close. Hence, the Nifty closed very strong for the day at 5938, (4.26%) above its previous close. The advance: decline ratio was also very positively biased at 936:266.

The American Markets have closed slightly weak. The Asian Indices are currently trading flat with a slight negative bias. We can expect a positive opening for our markets after yesterdays strong rally and the markets will take out its all time highs at 6011 levels. But a small profit booking cannot be ruled out towards the close. Hence we expect to close positive for the day. We can see that the markets have closed at 5938 levels yesterday. We can also notice on the daily charts that the markets have bounced back very strongly from its short term support at 5670 levels. We are also currently trading near our all time highs at 6000 levels. Therefore, we expect the markets to move slightly higher from the current levels because the markets tend to rally much higher, when it is in a strong momentum uptrend. Hence, we expect the markets to move towards the 6080 levels in the short term.

The BSE Oil & Gas index closed at 12138 levels yesterday, which is (6.40%) above its previous close. We can also notice that this index is currently trading at its all time high levels. This Index has got a strong short term support at 11300 levels which is unlikely to be tested in the short term. Hence ,we expect this index to move to 12400 levels in the short term. We like Essar Oil and Petronet LNG in this sector.

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