"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
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