We saw that the Nifty opened strong in the morning session at 5925 levels. After that, the markets were trading in a sideways range between 5920-5950 levels. There after, the afternoon session saw a sharp dip for our markets to the 5840 levels. The markets then made an attempt to move upwards, but faced heavy resistance at 5900 levels and again moved downwards. Hence, the Nifty closed very weak for the day at 5786, (-1.04%) below its previous close. The advance: decline ratio was also very negatively biased at 443:736.

The American Markets have closed very strong. The Asian Indices are also trading at higher levels. We can expect a positive opening for our markets in the morning session. The markets will then try to test its next upside resistance at 5840 levels. But, some volatility can be expected in the afternoon session. Hence, we expect the markets to close positive for the day. We can see that the markets have closed at 5786 levels yesterday. We can also notice on the daily charts that the markets are now very close to their strong support at 5700 levels. Since, the markets have now consolidated very well in the 5700-6000 range for the past few days, we can expect a small pullback rally to slightly higher levels. Hence, we expect the markets to move upwards to 5900 levels in the short term.

The BSE PSU index closed at 9888 levels yesterday, which is (0.63%) above its previous close. We can see that this index is currently trading close to its all time high levels. This index, has got a strong support at 9500 levels, which should hold in the short term. Hence, we expect this sector to move to the 10200 levels in the short term. We like Neyveli Lignite and Engineers(I) in this sector.

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