The American Markets have closed very strong. The Asian Indices are trading at higher levels. We can expect a strong opening for our markets, taking cues from the international markets. After that, our markets will then try to move up to higher levels, but will face some upside resistance at 6050 levels. We can expect, slight profit booking at higher levels, but the positive market breadth will insure that there won''t be any major downside for our markets towards the close. Hence, we expect to close very positive for the day. We can see that the markets have closed at 5940 levels yesterday. We can also notice on the daily charts, that the Nifty is trading very close to its strong resistance at 5980 levels. After yesterdays strong closing, the markets are giving an indication that the 5980 levels, would be breached on the upside very soon. Hence, we expect our markets to move slightly higher to 6000 levels in the short term.

The BSE Oil & Gas Index closed at 12940 levels yesterday, which is (2.28%) above its previous close. We can see that this index is currently trading at is all time high levels and has also broken its strong resistance at 12800 levels on the upside convincingly. Hence, we expect this index to move higher to 13200 levels in the short term. We like Essar Oil and Indian Oil in this sector.