We saw that the Nifty opened with a positive gap in the morning session at 5985 levels. After that, the markets gained further strength and touched its all time highs at 6012 levels. There after, the afternoon session saw a sharp dip for our markets to the 5900 levels. The markets then again made an attempt to move upwards, but faced heavy resistance at 5950 levels. Therefore, near the closing session the markets were not able to sustain, at higher levels and slowly drifted downwards. Hence, the Nifty closed slightly weak for the day at 5866, (-0.58%) above its previous close. The advance: decline ratio was also very weak at 304:842.

The American markets have closed very weak.The Asian Indices are all currently trading at lower levels.We can expect a gap down opening for our markets in the morning session and test the 5800 levels initially.But,any intra day pullback won''t be much sustainable as we can expect to drift much lower in the afternoon session to 5750 levels.Hence,we will close very weak for the day. We can see that the markets have closed at 5866 levels today. We can also notice on the daily charts that the markets are consolidating in the 5850-5950 range for the past few trading sessions. But, this consolidation has come, after a sharp run for our markets from the 5070 to 5900 levels. Hence, we expect this consolidation to continue for some more time and the markets should continue to trade in the 5800-5900 levels for some more time

The BSE Capital Goods Index closed at 20141 levels today, which is (1.75%) above its previous close. We can see that this index is currently trading close to its all time high levels. This index, was also able to breach its short term resistance at 17000 levels last week with very strong volumes. Hence, we expect this sector to move to the 22000 levels in the short term. We like Larsen & Toubro and Punj Lloyd in this sector.

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