"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)
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