We saw that the Nifty opened strong in the morning session at 5955 levels. After that, the markets were trading in a narrow range of 20 points from 5930-5950 levels. But, the afternoon session saw our markets trading slightly higher at 5970 levels. But towards the close, the markets again started drifting downwards and moved to much lower levels. Hence, the Nifty closed flat for the day at 5908, (0.01%) above its previous close. But, the advance: decline ratio was very positive at 949:256.

The American Markets have closed very weak. The Asian Indices are all currently trading at very low levels. We can expect a negative opening for our markets in the morning session. Afterwards, the markets are likely to drift further downwards to 5850 levels. But, the 5820 levels could prove to be a strong intra day support for our markets. Hence, we expect to close weak for the day. We can see that the markets have closed at 5908 levels yesterday. We can also notice on the daily charts that the markets are facing strong resistance at 5950 levels, since the past few trading sessions. Since, this 5950 levels is proving to be a strong resistance in the short term, we can expect our markets to drift slightly lower in the next few trading sessions. Hence, we expect our markets to drift slightly lower to 5800 levels in the short term.

The BSE Auto index closed at 5413 levels yesterday, which is (2.45%) above its previous close. We can also notice that this index has got a strong support at 5200 levels. Hence, we expect this index to move slightly higher to 5500 levels in the short term. We like MRF and Hindustan Motors in this sector.

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