Pre-market: Sensex may open higher

Following a smart rally in the world markets, the Sensex is likely to open on a positive note. However, the index may not be able to hold gains as persistent selling pressure at higher levels coupled with break of some key technical support levels could see the index drift lower.

The index is likely to face stiff resistance around the 12,325-12,350 level on the upside, while in case of a downmove the index is likely to find strong support around 12,050 levels.

According to market analyst Shah, traders and short-term players should look at booking profits in case of upside in the opening trades. As the world markets are strong the Sensex is likely to gain around 100 points in the opening trades.

He adds, that the index is likely to face strong resistance around 12,350 level, while the downside target for the index is around 11,800.

Stocks to watch today are Reliance Energy, Tata Steel and VSNL. One may continue to hold mid-cap stocks with strong fundamentals. TCS looks weak.

Another analyst Bharat Momaya, the move of sensex towards its all time high is most imminent. A major long term Bull phase is now set in and he expects the Sensex to scale new highs in times ahead.

The Q2 results will start pouring in and should make market undergo frenzied buying from bulls. With the upmove gaining momentum, market will attract those investors who were sitting on the fence all these days.

Caution to short sellers is advisable as sensex can make sudden and sharp upmoves.