"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)
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