"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)
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