Outlook for Tuesday

"Our markets have turned volatile on monday, due to mix of positive results from index heavy weights, and negative overseas cues, finally closed almost flat. While sensex is hovering around 20 DSMA, Nifty is well below 20DSMA and faced stiff resistance yesterday in the final hours of trading, wiping out the gains made during the day. US markets closed positive over night, amidst volatility, and our markets shall open with positive gap due to huge shorting in Nifty futures, which continue to trade at 40 points discount to the spot since the beginning of the series.

 

Liquidity tightening is on cards by Chinese Government by increasing reserve requirements by 50 basis points from August 15th; Our RBI Credit policy and the measures to be announced around 12 noon hold the key for recovery or continuation of correction in our markets for some more time. In our view, the positive performance of bankex and banking sectors shares in our markets and ADRs overnight in US markets indicate the optimism among players that RBI might not disturb the liquidity in a big way, though would like to be cautious on inflation control, exchange risk and M3 management, sustaining GDP growth.

 

The day's range for Nifty shall be 4365 (Support) and 4545 (Resistance); Sensex shall be 15000 (Support) and 15555 (Resistance)

Outlook for the Day and Week

"Market were volatile throughout last week, while July settlement ended quite positive with highest ever closing for Nifty(4619.80), the much awaited correction came on the last day of the week suddenly, on week golbal cues. Many supports were broken in the process in a single day. When such steep correction happens, the usual supports held in the past during the rally shall be the stoplosses for the nimble traders, which get triggered, thus accentuating the fall much more than as it would have been in normal course. This is the nature of bull market correction, the one we are witnessing now is a bull market correction and in sooner than later the markets will concentrate on the fundamentals of economy, performance of individual companies and sectors, and thus bringing stability back.

 

Results of Reliance Industries, SBI, Grasim and HUL are announced on Saturday/Sunday,which have shown excellent performance, and the buy back at aprice of Rs.230/- announced by HUL (formerly known as HLL) is at 17% premium to the CMP of 199 augurs well for the stock, which is an index heavy weight. Now that FIIs becoming net sellers after a long time, gives some relief to the strengthening of rupee, which is continuously appreciating. The Technology sector, export oriented sectors and ecpecially pharma should lend support to markets while the other hot sectors leading the rally so far would shed some more weight, in this correction. Markets need to consolidate in a range for a while before the next larger move unfolds.

 

Owing to the further weakness in the US markets on friday, markets shall be opening weak today and shall be volatile during this week; as one more important event shall be unfold tomorrow., RBI's Credit Policy tomorrow(on 31-07-2007) by 12 noon, which give fair idea on interest rate scenario, monetary measures and out look on the economy etc., Once this information is digested by market players, stability shall return to the markets.

 

August series is very long drawn one so the range on Nifty shall be wide; already it has closed below 20 DSMA, while Sensex is resting on 20 DSMA as at the close on last friday. The next logical supports are placed at 4318.30 (Nifty) and 14640.86 (Sensex) for today and tomorrow as they were June monthly closings, in case of continuation of weakness on further selling by Institutions or margin calls. However, the levels of 4362.95 (Nifty) and 14723.88 (Sensex) which were earlier tops of this bull rally shall usually invite investment by new players as well as long term investors. 50 DSMA are placed at 4329.25 (Nifty) and 14708.57 (Sensex) as of now; investing in performing blue chip stocks around these levels, on observing supports in the markets shall give substantial returns in the medium term.

 

Strategy for the month: Buy straddle of 4450 on nifty to capture the volatility on nifty. If one is a trader can purchase calls of 4300 on weakness and puts of 4600 on rallies during the month, for good returns.

 

The day's range for Nifty shall be 4365 (Support) and 4530 (Resistance); Sensex shall be 15000 (Support) and 15600 (Resistance)

Out look for Friday

" Markets have turned quite volatile during this week as expected, since huge outstanding open interest posititions are to be rolled over to August series. Overseas markets, especially US markets created history, by recording all time highs, are volatile. July series are  behind us now and our markets have crossed 1,00,000 crores total turnover on a single day, due to volatility in the past 3 days. On a closing basis indices have closed at top end of the range, especially nifty closed around 4620 thrice during this week itself, shows strength of bulls who are keeping the indices in bull phase, by rotating sectors and stocks, which is quite heartening for our markets, in spite of heavy melt down in over seas markets.

 

US and Eurpean markets were quite down overnight, which will give phillip to bears and Nifty futures discount in August series now stands at hefty 42 points confirms negative gap down opening for our markets, is a foregone expectation, and what happens in next 15 minutes gives the clues for the day trading and out look on this series. Inflation data shall be released around 12 noon, and Index heavy weight Reliance Industries results are slated for 28th. RBI's credit policy announcement on 31st are the important events to decide the short term of our markets. Previous week closings of Nifty( 4566.05) and Sensex(15565.55) will act as immediate supports for the initial weakness in the markets, and trading below these levels with volumes invite bull unloading and further weakness if any, will invite margin calls from brokers and exchanges, which can cascade the fall, due to large open interest positions and some sort of complacency is setting in, slowly with retail and institutional players too back home, that we are insulated from what happens elsewhere. One thing we need to remember is that we are integral part of world markets, and FIIs are the major players in our markets. Though FIIs are buyers for the past 5 days Domestic Institutions are net sellers, though marginally, gives an indication of distribution cum sideways consolidation scenario for August.

 

In such scenario going long on strangle of 4600 calls and 4500 puts shall be the safe strategy for this series.(August)

 

The day's range for Nifty shall be 4480 (Support) and 4650 (Resistance); Sensex shall be 15200 (Support) and 15900 (Resistance)

Outlook for the Day and Week

"Markets have continued their bull run last week, both indices recording new highs, as they are in unchartered territory, finally closed at all time highs for the day, week on friday. Inflation remained unchanged at 4.27% for the week. Earnings season is proceeding in line with expectation, India growth story and promissing sectors performance is always assuring consistancy, which is giving confidence for FIIs in particular, who have already pumped more than what was invested in the entire year 2006 already, as reports came last week.

 

This week settlement of July series on 26.07.2007 and results of index heavy weights are scheduled. US markets are volatile after touching 14000 + levels on subprime losses which might go upto $100 Billion, as per the estimates by Fed Chairman. The ripple effect of such huge loss to other sectors of US economy, and psychological and sentiment effect on other markets, as most of the markets are moving up on huge FII flows, is the risk faced by world markets at this juncture. 

 

Nifty is likely to close positive on the settlement date this series, over previous month close of 4282, thus, buying calls on every fall, or correction in the money of August Series shall give good returns. Nifty range for this week shall be 4450 to 4650, so buy calls on weakness in the market and puts on rallies for intra day trading.

 

The day's range for Nifty shall be 4515 (Support) and 4620 (Resistance); Sensex shall be 15300 (Support) and 15720 (Resistance)

Outlook for Thursday

"Markets have turned volatile as predicted yesterday, after reaching 4550 (Nifty) and 15540 (sensex); late buying in select index stocks save the day, finally indices closing flat to positive teriitory. Indices are making lower tops and bottoms on daily charts which is negative sign for short term correction or sideways consolidation.  Nifty futures discount stands at 18 points on adjusted basis points out that shorts are not out of the system, which are created on 13th and 16th. However, the same shall cushion the weakness in the markets, as it is a running correction which is natural in long term bull markets.

 

Wipro shall announce its results today before opening of the markets, and expectations are muted so much fire works need not be there on the stock or sector. Satyam will be tomorrow with which more or less all tech biggies should have done for the quarter. Any weakness in the stocks of techies or overall market, presents good long term portfolio builiding in the sector, since this sector is the major job creator in the Indian economy, and comapnies have learnt to tune to the vagaries of currency fluctuations, and in times to come, will put in place the hedging mechanism to offset losses.

 

US markets tanked initially overnight, on the remarks made by Mr Bernarke on the concerns affecting the economy, such as subprime issues, energy prices and slowing of economy. Inflation being the main target for the Fed chances of reducing interest rates in the coming FOMC meeting are blurred at present, which forced investors to press for sales, as Dow toched record high above 14000 recently. Weakness in dollar and slowing of US economy will make funds to look at emerging markets, which are performing well, as liquidity is high in the world over at present.

 

Roll over of positions from July series to August shall have commenced and will pick up from now on, which provides huge volatility as the open interest positions are above Rs.80,000 crores. Markets will have sideways movement with downward bias till settlement of this series on 26.07.2007 and shall resume the upward journey from there on.

 

The day's range for Nifty shall be 4400 (Support) and 4550 (Resistance); Sensex shall be 15000 (Support) and 15450 (Resistance)

 

 

Outlook for Wednesday

"Both indices have made new highs and received selling pressure, profit booking since the rally is one sided during this month till now. Nifty futures discount stands at 15 points to the spot as of yesterday. But for Reliance Industries stellar performance, indices should have closed much lower. Marginal closing losses to flat cannot be a comforting feature, since the A/D ratio which opened positive and was maintaining positive through out the month has turned negative. 4550 on Nifty and 15450 are significant resistances where selling can be expected once again. The bull run is intact, and rotation of sectors and stocks should see the markets consolidate at the higher end of the range for some days;

 

US markets have created history by DOW breaching 14000 mark and trading over it for some time, before the profit booking brought it below that level, finally closing in positive territory. With ample liquidity in the system, any fall in our markets is a buying opportunity, certainly volatility shall increase from now on, if we are near the top. Top formation is a process and shall not happen in a day or two. Markets have digested the tech results in general and there is no major fall in the tech majors from this level, and shall move up if the dollar strengthens in the months to come. TCS results are encouraging, as their market mix made them to perform in troubled environment. Heartening feature of TCS strategy is having taken hedge of $2.5 billion at Re.40/- will give great strength to their earnings in the coming quarters. It is a buy on dips from now on.

 

The day's range for Nifty shall be 4450 (Support) and 4550 (Resistance); Sensex shall be 15000 (Support) and 15450 (Resistance)

Outlook for Monday and Week

"Markets have defied all logic and gained from strength to strength, making new highs on regular basis, as they are in unchartered territory. It is also heartening to note that both Nifty and Sensex have closed at higher end of the trading range on weekly and daily basis, which is strength going forward. Technology sector did report the earnings in line with market expectations, where as banking sector has done well. Huge inflows and the domestic liquidity are keeping the markets in firm stand. With crude staying firm around US$74, on supply concerns, inflation reported an upsurge to 4.27% from 4.13% over previous week, RBI is hesitant in taking any measures which might aggravate the inflation pressures. Petroleum ministry is contemplating raise in pretroleum products such as petrol and diesel, since the overall Indian crude basket has crossed tolerable levels, and subsidising the oil marketing companies losses beyond a point is difficult for the government too. Some encouraging measures as subsidising the interest etc., are announced by commerce minsitry to encourage exporters. Watch out HPCL, BPCL and IOC this week for good performance.

 

US markets and all world markets are in perfect bull phase, and India cannot be left out; however, our markets have risen too fast in too short time, due to participation of selective heavy weights and sectors, gives a picture that while we run the bull wave, caution is to be exercised, since the correction or selling from institutions shall come suddenly, due to any external risk, though internally things are ok for the present. Nifty futures are at a discount of 21 points as the close of friday trading as against 2 points as of thursday, indicating that the players have gone short once markets crossed 4500 level. 4530 is the consensus medium term target analysts are looking at and Nifty closed around 4505 after touching a high of 4513.90. When markets open positive on monday in the initial hours of trading it is advisable to go long on 4500 puts as a hedge against portfolio.

 

The day's range for Nifty shall be 4450 (Support) and 4530 (Resistance); Sensex shall be 15000 (Support) and 15400 (Resistance)

 

 

Out look for Today

"Markets opened firm and traded strong in positive territory through out the session, Nifty made a new high and Sensex missed it by 3 points; It was an all time ever closing for the indices, and inspite of Nifty futures discount trading at a discount of 5 to 8 points during the session the final closing is just 2 points as it closed in the earlier session. This gives that there are no shorts in the system, nor there is euphoria at these high levels. Most of the traders are creating positions intra day and squaring off before the end of the session.

 

Technology sector is once again beaten out of shape, especially Infosys inspite of strong close in the markets. Rupee strengthening beyond 40.20 has attracted intervention by RBI and it touched 40.70 intraday. Exporters are the worst effected and exerting pressure on the government through the commerce ministry, where it is felt that export target may fall short of expectation if some mechanism is not evolved to defend the currency. Under these circumstnces, it is obvious that some measures shall be initiated which will either compensate exporters or stop further strengthening of rupee. BPO industry which is major employer is forecasting that about 275000 jobs will be lost if rupee were to breach 40 mark. There are feelers sent to the government and market that lay off may be there to protect margins by exporters and BPO industry.

 

US markets created history and closed very firm on better retail sales numbers and also slurry of M&As being reported by major companies. Today the inflation data shall be released at 12 noon, which might show further firming up. Crude is trading abvoe US $ 73 on supply concerns. Our markets shall open firm with a gap and will make new highs is foregone conclusion at the opening trade itself and since we are in stretched territory, how much profit sales shall be there can be anybody guess. The momentum is in favours of bulls who are in full command for the present, and buying on intraday weakeness should be the strategy for traders. It is advisable to hedge the portfolio by going long 4500 puts when market approaches this level, since already the nifty is up by more than 6% from previous settlement.(4282 on 28.06.2007)

 

The day's range for Nifty shall be 4365 (Support) and 4530 (Resistance); Sensex shall be 14800 (Support) and 15400 (Resistance)

Infosys Q1 earnings and guidance

"Infosys Technologies has reported its Q1 earnings well before the opening of market, and they are in line with market expectations. While the revenues are up in dollar terms, they are down in rupee terms against their own expectations, villain being the strong rupee, which appreciated 8% in the reporting quarter against US$. Naturally, investors have pressed sales in the counter along with other tech heavies viz., Tcs, Wipro and Satyam too..which have corrected more than 4% in the opening trade, bringing indices into negative territory.

 

Gap down opening on both indices brought both indices into corrective mode, as predicted by us, and buying at lower levels helped markets to recover quickly and for most part of the day indices have traded around previous week closing and finally closed around previous week levels, shows strength in the market. The short term correction seems to be over and with positive cues from US markets and passing of an important event, markets will look for the performance of other sectors from now on, and deeper correction or strong upsurge may not be there, thus resulting in sideways movement of indices in a range consolidation for building higher base, from where strong bull move will be in the offing from Sept'07 onwards.

 

Infosys Technology Earnigs and Guidance: Positive features of the Q1 earnings is revenues are up in $ terms, 26000 employees are to be added during the year, shows the opportunity to increase business and grow further. Rupee hedge at 40.58 against US$ will give opportunity to report better earnings down the line, as rupee may not be allowed to slip below 40 by RBI because it is already effecting all exporters. Any strengthening of the dollar from now on shall be to the advantage of the company, hence, one has to buy on dips in the stock price or weakness in the market, due to any unforeseen circumstances, will benefit in the long term. As long as rupee trades in a band of 40 to 41 the stock and sector shall continue to under perform and cannot give higher returns like other sectors such as., real estate, capital goods, banking and finance sectors.

 

Outlook for the Day: Sensex has given sell signal on long term charts (japanese candle sticks) ending the 4 week rally as predicted in opening report for 11th. However, markets shall open positive today and might attempt to challenge the highs created on 10th, where selling can be expected. Volatility shall be the order of the day and it shall provide opportunity for Nifty intra day traders. Nifty futures discount is at 2 points as against 26 points previous day indicates that the shorts are covered gives positive outlook for Nifty today.

 

 

The day's range for Nifty shall be 4320 (Support) and 4444 (Resistance); Sensex shall be 14650 (Support) and 15150 (Resistance)

 

 

Out look for Wednesday

"Both indices have touched new highs and were volatile as predicted, and closed in negative territory at the end of the session, showing tiredness of the rally. Nifty futures discount increased to 26 points from 14 points as of 9th indicates creation of short positions, which can be expected before an important event, i.e., Q1 results of Infosys Technologies and thier guidance for the year + outlook for the future, in view of continued strengthening of rupee, slowing down of US economy etc.,

 

There is consensus on reduction on earnings to be reported, there is no doubt that margins are under pressure; So far Infosys always met their guidance and in fact surpassed number of times. This time too we hope that they deliver what they anticipated and estimated. Whether they match the market estimates or expectations is the issue. Technology sector in particular is under performer so far, and would lead the rally if there is positive surprise from the company on all fronts, when they announce the results before market hours and discuss the details during the market hours.

 

Markets being at the upper end of the range and rally is 4 weeks old now, markets might correct substantially from these levels, as it is appearing top heavy. One should book profits and stay in cash at least 25% of portfolio to re enter on correction which might be 5% from top on indices. Buy 4350 calls if market opens in negative territory and 4450 puts in case it opens positive and trades firm, as volatility will increase and indices might close negative for the week, on profit booking.

 

The day's range for Nifty shall be 4320 (Support) and 4444 (Resistance); Sensex shall be 14650 (Support) and 15150 (Resistance)

Outlook for Tuesday

"Indices are in unchartered territory and making new highs daily. At present bulls are in perfect control of the situation, the corrections are intraday and shortlived, but this is not the time to go long on every stock or sector. Though markets are making new highs, selective stocks and sectors are helping it. It is not a secular bull run, so one should not throw caution to the winds and jump in haste.

 

Investment strategy should be stock specific, where as Nifty traders shall have opportunity on either side, as the volatility shall increase from now on with on set of earnings season, Infosys results announcement being scheduled for tomorrow; Since markets have closed firmly above 4400 now, going long 4400 straddle for intraday and intra week trading can be the best option in the current situation.

 

The day's range for Nifty shall be 4320 (Support) and 4444 (Resistance); Sensex shall be 14650 (Support) and 15150 (Resistance)

 

Out look for the day and Week

"Both indices have touched new highs, and closed in the positive territory, week on week basis too. Psychological figures of 15000 on Sensex and 4400 on Nifty are breached intra day on strong buying and short covering in technology stocks. Inflation data released at noon shown marginal rise from 4.03% last week to 4.13% for the week, our assessment that the inflation has bottomed out for the time being is being vidicated. Crude continues to be firm above US $ 72 on supply concerns. US markets too closed firm on better earnings expectations.

 

This is a crucial week for the technology sector, which is under performer during the past 6 months, Infosys coming out with results for the first quarter, guidance and outlook for the industry in general, can decide the trend for the medium term. It is trading far below 200 DSMA and positive guidance and better than expected results or other wise can bring 7 to 10% swing in the stock price and sector on 11th after the announcement of the news, before market hours; In this indecisive situation, going long / short will be suicidal. One can go long on straddle of Infosys 1950 strike price in current series, and also straddle of 4350 strike price on Nifty in current series, as the volatility shall be quite high. Risk averse players, can wait till the event passes, and consider the strategy observing the direction on 11th.

 

Ongc is currently trading around 877, and is under performer in the rally. Owing to firming of crude prices above US $ 72 and likely hood of further rise is beneficial to the company. It can be accumulated on every dip in the stock price or weakness in the market for long term returns. It being index heavy weight, will play an important role in the days to come, when the long term view on the market is positive and direction Up!

 

The day's range for Nifty shall be 4320 (Support) and 4420 (Resistance); Sensex shall be 14650 (Support) and 15050 (Resistance)

 

Outlook for Friday

"Sensex opened with a gap and touched another new high at 14963.26 where selling emerged, we said 14950 is a strong resistance in our weekly forecast, and profit booking brought both the indices in to negative territory for most part of the day. Nifty made a lower top and lower bottom yesterday, giving first signal of tiredness, fresh longs are absent as the event is nearing, Infosys results and guidance on 11th instant. However, inidices have closed marginally negative to flat at the end of the day. Nifty futures traded at a discount of 10 points during the day most of the time, and short covering, as Nifty could not breach 4300 level, made it to recover and close flat, at the end of the trading.

 

Bank of England has increased the interest rate by 25 basis points, where as ECB left the rate unchanged. Crude is firm above US$ 71 on supply concerns. Inflation data shall be released at 12 noon which might show signs of bottoming out around 4.25%. Inflation was down from 6.7% to 4.03% last week, for seven straight weeks in a row. The fall in inflation is not on account of fall in prices, and is due to base effect, as it is being viewed by some economists. Rupee is strong against US $ on account of flows and RBI seems to be protecting it from not breaking 40 level, as it would further hurt exporters. Rupee might trade in a band of 40 to 41.50 during the month.

 

Technology sector is forsaken baby for the moment, in view of the above situation, and underperformer in the entire rally of indices. Markets will have clear direction on the out look to be released on 11th by Infosys management. Markets will be volatile and will consolidate sideways a head of the results season unfolding next week.

 

Important levels to watch on Nifty 4318.30 and Sensex 14640.86 which are previous week and month closings. Any weakness in the markets below these levels will be the first sign of markets going into deeper correction next week. One can go long on Nifty futures on weakness around 4300 to 4310 band, with a stop loss at 4280 intra day for profit. Strong resistance area is 4360 to 4375 on Nifty futures.

 

The day's range for Nifty shall be 4280 (Support) and 4380 (Resistance); Sensex shall be 14650 (Support) and 14950 (Resistance)

 

 

Out look for Thursday

"Both indices opened firm and touched new highs, however, profit booking and caution at higher levels made markets volatile. Both indices closed positive for the day. Sensex is approaching crucial resistance at 14950 where profit sales and caution can be expected as strengthening of rupee is hurting exporters and software sector in particular, whose major earnings are in dollar terms. Nifty futures are at nominal discount of 4 points does not give any strong upmove, as shorts are out of the system. Any negative trigger can make markets to slide easily, so caution is to be the key point.

 

Nifty is trying to manage close around 4355, and volatility can be expected till the Infosys results are out on 11th, Depending on guidance and outlook for the sector markets will take major trend in either direction from there on. Intra day traders can buy straddle of 4350 strike price (buy 4350 call and put option) in the current series and make quick returns capturing the volatility.

 

The day's range for Nifty shall be 4280 (Support) and 4400 (Resistance); Sensex shall be 14500 (Support) and 14950 (Resistance)

"Bull run continues"

"Sensex and Nifty opened firm yesterday, traded positive throughout the day and both made new highs; Overseas markets are stable and US markets are closed today, for Independence day. Overall sentiment has improved with caution, Since the rally is running for 4 days, correction is expected anytime, which shall be an opportunity to go long on the Nifty. Nifty shall be volatile as it approaches 4365 - 4375 range, and running correction can be there, which should be used to go long on 4300 calls for intraday / intra week gains. On noticing weakness around 4380 - 4400 levels on nifty, one can hedge the portfolio by going long on 4400 puts for intraday / intra week gains.

 

Indices can have real strong bull run, once ITC, HLL and Technology majors start participating in the rally with vengence. Secular bull rally can be expected once these stocks, which are laggards start participating. Long term investors can start accumulating these stocks on any weakness in the market, whenever correction happens.

 

 

The day's range for Nifty shall be 4280 (Support) and 4400 (Resistance); Sensex shall be 14500 (Support) and 14950 (Resistance)

 

"Sensex creates History"

"Sensex opened with a gap yesterday and traded firm above 14700 for quite some time and touched 14745.97 creating a history, as it cleared the previous high made on 09.02.2007. Though  Nifty is trading in new territory above 4245.30 for long period, Sensex could clear yesterday, clearly giving bullish out look as predicted in our report "Outlook for July' 2007" posted earlier, before opening of the markets. Nifty futures discount reduced from 22 points to 11 points as at the close of trading is positive for the markets today.

 

US markets closed strong over night and asian peers are trading firm, will give firm opening for our markets and short squeeze will help indices to post gains today. Sensex closing above earlier high of 14723.88 during this week will give confidence for fence sitters to jump in to buying mode, which should take sensex to the upper end of the range for the week...14950. Volatility will be high as we are trading at all time highs, and it is now "buy on dips markets till the results season unfold on 11th with Infosys Q1 numbers and guidance. One may watch trading opportunities buy going long 4300 straddle ( Buying 4300 call and put options for making quick returns) in June series.

 

The day's range for Nifty shall be 4280 (Support) and 4365 (Resistance); Sensex shall be 14500 (Support) and 14800 (Resistance)

Out Look for July' 2007

"June month witnessed volatile movement in Nifty, while Nifty made a new high on 04.06.2007 at 4362.95, Sensex could not clear the previous high of 14723.88 made on 09.02.2007. Both the indices have closed positive, month on month and the weekly closing also was positive, thus giving a bullish outlook for today.

 

This is very important month, since earnings season would kick start with Infosys results to be announced on 11th along with guidance for the quarter and year shall be watched very carefully by all players. The sector is in catch 22 situation, with strengthening of rupee visa vis US $; and possibility for further strengthening since major flows are expected during this week and month, will directly impact the bottom line of Indian software sector which holds key for the direction of the markets. It is broadly felt that though the large players have hedged most part of their receipts, still margin pressure shall continue due to increase in earnings too, due to competetion in retaining talent. Technology stocks, have under performed the broader market till now and are resting on strong support levels, can give the phillip to the market to move in to new bull orbit, if there are positive signals and noices, contrary to the expectation, as heavy short positions are created in sector.

 

Nifty might trade in a broad range of 4100 to 4500 during the month, with continuation of volatility. Today the markets might open positive, an attempt may be there to clear the Sensex previous top during this week; however, sustaining above 14500 on any intra day weakness shall certainly will be a strength to the markets, and markets might witness 14950 before the result season unfolds.

 

The day's range for Nifty shall be 4280 (Support) and 4365 (Resistance); Sensex shall be 14500 (Support) and 14800 (Resistance