Markets Today

"Markets have opened positive and trading positive so far; Inflation data released shows that it is 4.03% vs 4.28% reported last week, quite positive for the interest rate sensitive sectors like banks and consumption related sectors. In all likelyhood markets might close positive for this week and month, which gives a fresh rally from monday. However, volatility shall continue for some more weeks.

One can buy Wipro in the range of 505 to 525 for a target of 655 in a year's time, which gives 25% return in absolute terms.

Strategy for July'07:

One can sell a strangle of 4200 put option at Rs.65.00 and 4350 call option at Rs.65.00; One needs to keep an initial margin of

Rs.60000/- and shall receive Rs.6500/- which works out to 11% return for the month.

Assumption:

Nifty shall move between 4200 and 4450 during the month of July and if settles in that range by settlement day i.e., 26.07.2007 the entire premium received shall be the profit earned. The position will have break even at 4070 on down side and 4480 on the upside, beyond which levels the loss shall be unlimited. Hence, once has to go long or short the nifty futures on crossing the threshold levels of 4200 on the down side or 4350 on the upside. "

Out look for Friday

"Markets opened with positive gap and traded positive for most part of the day, and finally closed postively at the upper end of the day's range, due to short covering. Nifty finally settled at 4282, lower than may settlement price of 4295.80, which is forecasted throught the series.

 

Our short term strategy of selling june series 4150 put and 4350 call has given complete profit, if followed.

 

Strategy for June'07:  written on Thursday, May 31, 2007

 

One can sell a strangle of 4150 put option at Rs.60.00 and 4350 call option at Rs.60.00; One needs to keep an initial margin of

Rs.50000/- and shall receives Rs.6000/- which works out to 12% return for the month.

 

Assumption:

Nifty shall move between 4150 and 4350 during the month of June and if settles in that range by settlement day i.e., 28.06.2007 the entire premium received shall be the profit earned. The position will have break even at 4030 on down side and 4470 on the upside, beyond which levels the loss shall be unlimited. Hence, once has to go long or short the nifty futures on crossing the threshold levels of 4150 on the down side or 4350 on the upside. "

 

Markets have traded sideways through out the month and consolidated well. They are on the verge of break out depending on the corporate performance which will start tickling from second week of july. July also will be volatile, since the performance of all sectors and companies shall not be uniform, with still few concerns on raise in crude oil price, firming of interest rates, other monetary measures by RBI to control the liquidity, M3, exchange volatility etc.,

 

US Fed has put the rates on hold yesterday, as generally expected, the policy statement on tackling inflation etc., are awaited, apart from the concern on subprime issues how effect the other sectors of US economy. June series are behind us. Today is the last day of the month, and quarter for us, and market players will concentrate on the expectation of results for the first quarter. Inflation data shall be released at 12 noon, markets shall be choppy today, as bulls will be attempting to see the markets close above may closing levels, and the bears will try to keep the markets under pressure by pressing sales due to week end consideration.

 

Markets might finally settle above may closing today, since index funds would like to ensure positive NAV, month on month comparision. If this happens there will be clear rally from monday onwards. we will give strategies for July in our next addition.

 

The day's range for Nifty shall be 4250 (Support) and 4350 (Resistance); Sensex shall be 14300 (Support) and 14700 (Resistance)

Out look for Thursday

"Markets have opened negative and were volatile closing in negative territory at the end of the trading session. Being penultimate day of June series roll over to next month picked up; Nifty and Sensex did not break the important levels of 4250 and 14400 even during intra day choppiness, gives hope that the june series will settle smoothly, between 4200 and 4300; perhaps below may series level. Tomorrow is the last day for this month and quarter, where index funds would like to see the indices close positive over May closing, proping up the NAVs.

 

Crude is firm above US$69 and US markets a head of Fed Meeting today, closed in positive territory on expectations that interest rate will not be disturbed for the present. Asian markets shall take comfort from this trend and our markets also shall open positive. July nifty futures are at 36 points discount, indicates that short positions are rolled over from June Series.

 

Short covering will lend support to the markets and short squeeze might take the markets out of the trading range on the upside. Finance Minister's observation that India is moving towards full float of its currency is positive indication for inflow of foreign exchange. It is reported that SBI is thinking of splitting face value to Rs.2 and the Government would like to reduce its holding through FPO are positive for the stock.

 

Watch the price movement of ONGC, RIL, SBI and ICICI Bank for clues on the settlement level of Nifty today.

 

The day's range for Nifty shall be 4200 (Support) and 4320 (Resistance); Sensex shall be 14200 (Support) and 14600 (Resistance)

Out look for Wednesday

"Markets were choppy at the beginning, and traded positive for most part of the day, on short covering and roll over to july series. High crude oil prices and the Ongc results declared after the close of hours on 25.06.2007, lead to the rally in its price which made Nifty to touch 4296.15 in the closing hours. Though both the indices finally closed positive, it is quite evident that index funds are concentrating on Nifty in view of the roll over and impending expiry of june series tomorrow, were supporting it. Ongc though a heavy weight, can influence Nifty more than Sensex, as Nifty is based on market capitalisation where as Sensex is calculated on free float basis. Sensex though surpassing May closing on intra day basis, is unable to close above the level ( 14544.46) for the past few days.

 

US markets have opened and traded positve for some time and on profit booking ended negatively, on concerns relating to their economy..Subprime lending issues, FOMC meeting on thursday etc., Our markets will be volatile today since large open interest positions are to be rolled over to next series, as today being the penultimate day for expiry of june series. Study of Derivatives data indicates that June series might settle between 4200 and 4300 tomorrow, probably lower than May series which settled at 4295.80.

 

Strategy for the day: If the markets open positive, one can buy a straddle of 4300 of current series and hold till expiry; In this strategy one will loose the premium paid if markets settle around 4300; whereas if there is wide swing on either side, one will make un lilmited profit.

 

The day's range for Nifty shall be 4200 (Support) and 4320 (Resistance); Sensex shall be 14200 (Support) and 14600 (Resistance)

Out look for Tuesday

"Markets have become volatile as roll over of positions commenced due to the impending expiry of June series this thursday, however, managed to close positive at the end of the session. Barring unforeseen events, it appears that the june series might settle below may settlement of 4295.80; Nifty is likely to settle between 4200 and 4300 on 28th June 07.

 

US markets have opened strong but gave away due to specific concerns related to their economy and companies, and closed marginally negative. Our markets might open positive but shall be choppy during the day. Stocks to watch shall be ONGC, RIL, SBI, RCOM and Technology sector.TCS, WIPRO and INFOSYS can be accumulated from the current levels gradually since they are holding their supports and shall give substantial returns in the long run.

 

High risk intra day traders can buy 4200 calls on dips and 4300 puts on rallies, in the current series to capture quick returns.

 

The day's range for Nifty shall be 4180 (Support) and 4295 (Resistance); Sensex shall be 14200 (Support) and 14600 (Resistance)

Review of Strategy suggested for June'07

Strategy for June'07:

One can sell a strangle of 4150 put option at Rs.60.00 and 4350 call option at Rs.60.00; One needs to keep an initial margin of

Rs.50000/- and shall receives Rs.6000/- which works out to 12% return for the month.
 

The above strategy was suggested on 31st May, 2007, considering a range bound movement of Nifty during June'07. Those who have followed the strategy can close the positions tomorrow and book profit.

Outlook for Monday and This week

"Both Nifty and Sensex have closed positive week on week; closed above the resistance levels of 4250 and 14400. Major public issues DLF and ICICI are successfully subscribed and advance tax payments by cement companies and Banks are quite encouraging. Especially Banks paying higher advance tax, in the raising interest rate environment, is a positive surprise, which forced SBI to lead the pack and market. Markets were volatile and closed slilghtly negative, as predicted, owing to profit booking on week end consideration.

SEBI has issued final order on Karvy Stock Broking Limited banning for 3 months from operations, for involvement in the IPO scam of 2005, on saturday. They can prefer an appeal within 21 days, which the management said will explore immediately. However, Karvy being a considerable player in the markets with good retail clientele, will also affect the sentiment on the markets in the opening of the trade on monday, coupled with weak close of US markets on friday.

Open interest positions are reaching record levels, and this being June expiry week, coupled with few other cues like FOMC meeting and the crude oil picture keep the markets in turbulance. Once June expirty is smooth, players will be concentrating on the results season which unfold from first week of July, starting with Technology sector. Rupee having appreciated substantially and looks like positioned to become still stronger, due to huge inflow of US$ expected as subscription to the recent large issues (viz., DLF IPO and ICICI FPO) the measures to be taken by RBI to keep it out of excess volatility will decide the trend of the markets too. Sideways consolidation is expected to continue till the unveiling of results season especially, Infosys..which comes out with the out look for the sector and annual guidance will set the dierection for the markets. So far the technology sector is under performer of the broader markets, and postive cues from the sector shall take the markets in to bullish zone, where as any signs of negative direction, will catapult them into bearish mode.

High risk traders can buy Straddle of 4250 June series for making substantial returns. (Buy 4250 call @ 37 and 4250 put @ 46) The expiry date is 28.06.2007, hence, the values shall be very quickly moving with spot markets and one has to quickly exit from the positions booking the profit.

Nifty is likely move in the range of 4150 to 4350 during the week; June series might close lower than the May settlement price of 4296.

The day's range for Nifty shall be 4180 (Support) and 4295 (Resistance); Sensex shall be 14200 (Support) and 14600 (Resistance)

Markets Today

"Inflation data released at noon shows that it stood at 4.28% vs 4.80% last week, is quite positive for our markets. However, being the last day of the week and markets have run up considerably, profit booking is expected at higher levels. Markets face hurdle at May closing for the day. The weekly closing is likely to be quite positive, which takes the markets into bullish orbit next week, since there is a clear bullish cross over where 5 DSMA is now stands higher than 20 DSMA.

 

One can trade long with a stop loss below 20 DSMA which will be the trend decider in case of any unforeseen large sell off.

 

Nifty might close flat to negative level for the day.

 

Out look for Friday

"Both Nifty and Sensex have closed above the resistance being faced for the past 20 days, thus giving scope for challenging the old highs. However, being the last day of the week, and also june expiry approaching, volatility shall be the order of the day. Inflation data to be released around 12 noon, if doesnot spoil the party, then bulls will have upper had in challenging May closings tomorrow. 20 DSMA shall be the support on intra day dip, if any, on profit booking, buying 4200 call options on declines shall reward substantially, as they are available cheap.

 

Agressive players can short strangle of 4200 call option available at 81 and 4300 put option at 67 and receive premium of 148, which shall give a profit of Rs.2400 when nifty trades between these two strike prices. The range will be 4152 to 4348; beyond which there will be unlimited loss. Initial margin requirement shall be Rs.60000/- (approx); The return shall be 4% of the investment for a period of 5 days. One can hedge by going long / short of nifty futures when the nifty breaks the range of 4200 and 4300 where the profit is protected, closing the favourable position.

 

The day's range for Nifty shall be 4215 (Support) and 4295 (Resistance); Sensex shall be 14250 (Support) and 14540 (Resistance)

Out look Thursday

"Both the indices have opened positive on wednesday and traded positive entire day and closed positve above 20 DSMA levels and near the resistance levels of sideways range specified for the day. There was no major sell off, nor committment at these high levels in view of the confusion persisting in the global markets, nifty futures traded at discount during the day, which can be treated as hedging by institutions.

 

US markets have corrected over night, however, asian markets are trading firm; it is to be seen whether the indices break the trading range today and close above it with large volumes, which invite short squeeze as well as fresh commitment, which can take the markets out of side ways consolidation pattern. Even if there is intra day dip owing to roll over and weak US markets, 20 DSMA is to be held for further rally, which now stands at 4214.26 (Nifty) and 14294.87 (Sensex).

 

The day's range for Nifty shall be 4150 (Support) and 4250 (Resistance); Sensex shall be 14050 (Support) and 14400 (Resistance)

Out look for Wednesday

"ICICI Bank FPO was subscribed more than 3 times in the first 10 minutes of the opening gave phillip to the banking sector which lead the recovery and Oil sector which is not interest sensitive, especially RIL and ONGC which will be the beneficiaries of crude trading above 68$ lead to short covering in these counters.

 

Both indices have closed positive, inspite of flat to negative trading of other markets in the region, and in the process exactly placed at 20 DSMA. Selective buying by institutions in heavy weights like., Reliance, SBI, Ongc and ICICI Bank forced the bears to run for cover in the last one hour of trading, which is evident in futures trading at premium for some time. Nifty futures closed flat to the spot and the follow up buying today coupled with participation of other index stocks can lead to further short squeeze if the indices close positive today above 20DSMA, it can be presumed that the trend is reversed for the upside movement.

 

However, the markets shall be volatile since roll over to july series is on and also US FOMC meeting scheduled for 28th june is another important event to pass smoothly, for further rally to continue. Sensex has given a break out high risk investors can trade long on Sensex with a stop loss below 14000.

 

The day's range for Nifty shall be 4100 (Support) and 4250 (Resistance); Sensex shall be 13950 (Support) and 14400 (Resistance)

Out look for Tuesday

"Both the indices opened on positive note taking cues from the firm close of US markets on last friday, and also strong trading of asian peers, however, the moment the indices are near 20 DSMA selling emerged and continued throughout the day, thus, resulting in negative closing for the day.

Lack of conviction to commit at higher levels, due to continued pessimism domestically lead to the fall. ICICI IPO shall open for subscription today and structuring of the offer encourages retail investors to take part in it. Though, it is one of the largest public offering, it will be easily successful, owing to interest in the sector, and the bank in particular. The issue closes on 22nd of this month. Nifty futures closed at 19 points discount for the day, indicating continuation of bearishness. Markets shall be choppy from now on, due to the roll over of positions to next series. Bulls have to defend the 50 DSMA which now stands at 4120.69 (Nifty) and 13994.93 (Sensex); failing which markets shall seek low levels to test the 100 DSMA.

The day's range for Nifty shall be 4100 (Support) and 4250 (Resistance); Sensex shall be 13950 (Support) and 14400 (Resistance)

Out look for Monday and This Week

"Indices have positive week on week, and mostly followed the global cues and trends as predicted. During the week the volatility brought the much needed correction cum consolidation with support emerging at 50 DSMA. US markets have closed positive and Asian markets have opened positive shall give the phillip to our markets too in the opening trade.

 

Shorts opened up once the indices touched 4200 on nifty and traded around the level for some time and when could not clear the 20 DSMA on friday. Nifty futures ended the day with 28 point discount which is a cushioning and lends support for the markets in the immediate short term. ICICI IPO is opening up on 19th and closes on 22nd, which absorbs the short term liquidity from the secondary markets. Markets shall be volatile for some more time and shall trade in a range, before making next major move.

 

The day's range for Nifty shall be 4100 (Support) and 4250 (Resistance); Sensex shall be 13950 (Support) and 14400 (Resistance)

 

Markets Today

"Inflation data released shows that it is at 4.8% down over last week. Japan Central Bank has left the rates unchanged at 0.50% All the asian indices, excepting China are positive. Sensex touched 20 DSMA and retreated from there due to profit booking, while Nifty is well below the 20 DSMA of 4225.

Indices are likely to close positive today and also for the week, which is positive sign for the bulls. Advance tax payments data shall be known by monday, which gives the likely performance for this quarter, based on which the positions will be built by players. Rupee shall oscillate between 40.50 and 41.50 during this month, Huge inflow of dollars expected during the month on account of subscription to DLF and ICICI public issues by FIIs, OCBs etc., which keep the rupee in tight spot.

Once 4225 on nifty is taken out with large volumes, markets will resume uptrend, till then sideways consolidation cum distribution takes place in a band of 4100 to 4250.

Out look for Friday

"Both the indices have opened positive and closed positive at the upper end of trading range, due selective buying and short covering. Nifty futures opened with a positive gap and the discount now stands at 14 points. Today being the last day of the week, profit sales at higher levels can be expected. The inflation data to be released at 12 noon will give the next push to the markets.

 

DLF issue is over subscribed. Crude is trading above $67 and the global cues are positive which should help the markets open in positive mood and the indices are likely to close positive for the week, on week on week basis. The indices have closed above 5 DSMA and shall encounter the stiff resistance at 20 DSMA level which now stands at 4225 (Nifty) & 14325 (Sensex).

 

The day's range for Nifty shall be 4100 (Support) and 4225 (Resistance); Sensex shall be 13950 (Support) and 14325 (Resistance)

Out look for Thursday

"Following global cues our markets too corrected, however, wednesday's lows are not breached. Nifty futures went into steep discount of 25 points, as most of the players hedged their 4100 puts short position. Shorting of 4100 puts was seen in the morning which confirms this observation. Bears inability to push the indices below the supports mentioned by us 4100 (Nifty) and 13950 (Sensex) on a negative cues day gives a sense that the correction from top is complete and markets are poised for a relief rally, with DLF IPO closing today and Vishal Retail IPO being subscribed more than 100 times yesterday.

 

Advance tax payments shall be over by tomorrow and markets should give credence to fundamentals. Recovery in US markets overnight and firm asian markets definitely give support for bulls to take on bears and short squeeze makes markets open with a gap up and sustenance of the gap on closing basis confirms the completion of correction at wednesday's lows..

 

The day's range for Nifty shall be 4100 (Support) and 4250 (Resistance); Sensex shall be 13950 (Support) and 14400 (Resistance)

Out look for Wednesday

"Sensex and Nifty were volatile during the entire day, and touched the supports mentioned like a dot intra day and bounced back in the last one hour of trading to close positive. The recovery in the markets is a clear sign of short covering by intra day traders, which is evident from the reduction in discount of nifty futures from 23 to 3 points at the end of the trading.

 

Nifty managed to close above previous week's close of 4145 for 3 days inspite of intra day volatility, is a positive sign, while sensex and nifty making new lows is a confirmation of down ward bias. In this correction, the lows are tested and  supported twice so far each time and then they are broken on the third day. Till the IPO of ICICI which is opening on 19th and closing on 22nd is over markets shall be volatile with a downward bias. US markes have traded in negative and closed deep in red on interest rate concerns.

 

IIP data on Indian Economy surprised on the upside, causing concern for the raise in inflation, over heating of the economy according to some economists, inspite of RBI and Govt taking adequate measures to tame the inflation to below 5% by last week. One argument is that the inflation is appearing low on base effect, otherwise it is still above the tolerable levels, which invite measures from RBI and Government. Markets will be volatile during the week and generally follow the global cues too, since the domestic money is diverted to IPOs & advance tax payments etc.,

 

The day's range for Nifty shall be 4100 (Support) and 4250 (Resistance); Sensex shall be 13950 (Support) and 14400 (Resistance)

Out look for Tuesday

"Both indices opened positive on global cues, however, selling at higher levels and lack of follow up buying brought indices to flat to marginally positive close at the end of the trading. Interesting feature is US markets are also following similar trend. Overnight both Dow and Nasdaq have closed flat after opening positive. DLF IPO has received interest from QIBs and shall be oversubscribed in the Institutional category when it closes on 14th.

 

5% correction level from top of Nifty is placed at 4144.80, where as for Sensex it is at 13987.69. Currently 4145 is being protected on closing basis by bulls, though sensex is yet to test the level of 13987.69, gives hope that markets might trade between these levels and the top for some time to consolidate and move upwards.

 

The day's range for Nifty shall be 4100 (Support) and 4250 (Resistance); Sensex shall be 13950 (Support) and 14400 (Resistance)

Out look for Monday and this week

"Both Sensex and Nifty were quite volatile during the past week, aping the global cues, and closed in negative territory week on week basis; Nifty after touching a new altime high of 4362.95, corrected and closed at 4145 (which is exactly 5% from the new peak), where as Sensex is yet to clear the earlier high made on 14723.90 made on 09.02.2007. Both domestic liquidity concerns on new IPOs, advance tax payments and fear of RBI's intervention kept markets nervous during the week.

 

This situation shall continue this week too, with opening of DLF IPO today and closing on 14th instant, and advance tax payments for the first quarter of this fiscal to be made by 15th, keep commitments to secondary market subdued, and every raise shall be utilized by the retailers, operators and traders to liquidate the weak long positions.

 

Both the indices have closed below short term moving averages, and bearish cross over of 5 DSMA falling below 20 DSMA, confirms our view that it is a sell on rallies market in the immediate short term. In an unexpected scenario markets might go for capitulation, in case of any panic selling, and take support at 100 DSMA which lies around 13800 (Sensex) and 4040 (Nifty). These levels in case touched should be the best buying opportunity for making substantial returns in very short term, as the bounce back from these levels shall be equally explosive, as valuations look quite attractive, since the first quarter performance shall be unvieled from first week of July'07.

 

Weakening of Rupee is comforting news for IT stocks and export oriented businesses, Rupee might trade between 41.50 and 40.50 during the week, RBI might intervene if there is severe weakness in the rupee as it would again hurt importers, inflation etc.,

 

The day's range for Nifty shall be 4100 (Support) and 4250 (Resistance); Sensex shall be 13950 (Support) and 14400 (Resistance)

 

 

 

Markets today

"Taking the negative global cues Sensex opened with negative gap and gradually recovered to positive with the positive 'inflation' data (it is reported at 4.85% vs 5.06% reported previous week). The weakening of rupee is helping IT stocks to bounce back and lend support apart from Ongc which also has recovered on firming of Crude prices. Markets are trading negative most of the day and week end considerations may close flat to slightly positive."

The IPO of DLF opening on 11th and the advance tax payments during next week keep corporates to press sales which keep the markets in consolidation cum negative phase till next week end.

Out look for Friday

"As predicted, though markets oscillated between positive and negative entire day, could not clear and close above 20 DSMA which now stands at 14306 (Sensex) and 4225 (Nifty), is a clear sign of weakness. Both the supports 14150 (Sensex) and 4150 (Nifty) were breached intra day, though closed above at the end of the session. Markets making lower tops and lower bottoms is a further confirmation of negative trend in the immediate short term. Negative global cues and the discount on Nifty maintaining at 20 points indicate negative opening. It is clearly a sell on rallies market for today and next week too."

Lack of buying at higher levels rather than selling is making markets to fall steep at the opening, volatility shall be the order of the day for two more weeks as there are two strong camps, one believing in the corporate performance and economic fundamentals, the other playing on inflation worries, interest rate tightening and exchange rate movement.

The day's range for Nifty shall be 4100 (Support) and 4250 (Resistance); Sensex shall be 13950 (Support) and 14400 (Resistance)

Out Look for Thursday.

"Nifty and Sensex broke the supports mentioned for wednesday..4250 and 14400; and naturally markets went loose, as lot of stop losses must have been triggered. Nifty and Sensex are making lower tops and lower bottoms and are naturally the sentiment is quite negative, since the global markets are also experiencing melt down.

Sensex and Nifty have closed below 20 DSMA of 14285 & 4219 on closing basis, gives strength to bears. Till markets close above the May closings; it becomes a sell on rallies market in the immediate short term. However, for medium and long term investors it is a great opportunity to pick up blue chips which have proved umpteen number of times to bounce back, once the sentiment improves.

The day's range for Nifty shall be 4141 (Support) and 4245 (Resistance); Sensex shall be 14150 (Support) and 14400 (Resistance)

Out look for Wednesday

"As predicted Nifty exactly took support around 4250 and since bears could not press sales beyond this level, had to cover during the day and at the end of the trading, which is quite evident from the vanishing of 20 point discount of nifty futures and finally turning in to a premium of 2 points. An important point to be observed is that the short covering and minor net long positions had resulted in recovery of the indices, and closing in positive territory finally."

Inflation and interest rate concerns till haunt the markets around the world including our markets since we are part of global economy and also to the fact that FIIs are major players who give much importance to these factors. The volatility should continue for few more days may be one more week, after which a clear trend shall emerge, mostly on positive side for our markets, since all other factors of economy are in place.

The day's range for Nifty shall be 4250 (Support) and 4350 (Resistance); Sensex shall be 14400 (Support) and 14700 (Resistance)

Our look for Tuesday

"Market closing negatively on monday, after Nifty making another all time high at 4362.95, appears to be as caution at higher levels, especially, since Sensex is yet to clear earlier high. Though it can be said as profit booking in a running bull market, yesterday's close below May closing levels invites caution from over enthusiasm. Confirmation of break out on upside shall now certainly comes after sensex clears the all time high with greater participation on larger volumes.

The day's range for Nifty shall be 4250 (Support) and 4350 (Resistance); Sensex shall be 14400 (Support) and 14700 (Resistance)

Markets Today

Markets have closed positive, although flat almost on friday, amidst some volatility. Volatility can be expected during this week too, since sensex is approaching the all time high of 14723.90 touched on 09.02.07 . Nifty is making new high since it is in unchartered territory.

Both Sensex and Nifty have formed perfect Bullish structure on short term charts too. Now it is buy on dips market for nimble traders. The Nifty might consolidate between 4250 and 4350 for some time before making next major move after sensex clears the previous high. The long term target for Nifty falls at 4678 as long as it holds above 4200 in the short term.

The day's range for Nifty shall be 4278 (support) and 4334 (resistance); Sensex shall be 14400 (support) and 14700 (resistance).

Economic Data & Market outlook

"GDP growth for Q4 has been reported over 9%; GDP growth estimates for this fiscal is also estimated to be more than 8.5% on conservative estimates; The inflation data realeased at 12 noon today is 5.06% meets the market estimates."

June month shall give indication about onset of monsoon over most parts of India, which is crucial for rural income and contribution of Agriculture to the GDP. By 15th June advance tax payments of Income Tax shall be made by corporates which give fair idea as to the performance of the companies for the first quarter of this fiscal. Markets shall be positive till around the end of next week and shall take the direction based on the data after 15th.

Barring routine profit booking on week end considerations markets are likely to close positive on week on week basis today, as there are no negatives as of now.