"Markets opened firm with a positive gap and traded volatile, though in a narrow range and closed positive to flat at the end of the trading, registering 8 sessions of positive closing continuously. Absence of cues from US on account of Labour Day Holiday, and lack of conviction to make follow up buying, and absence of big ticket selling suggesting that markets are in consolidation mood at higher levels, before making the next move up or down.
US markets closed firm overnight and our indices are approaching July closing levels which shall offer stiff resistance, and profit booking can be expected today. Nifty futures discount 37 points for the current month, indicates short positions, may be a hedge to protect the portfolios on any sudden fall or reversal trend, by institutions. Resistance and supply zone from trapped investors can be expected in the area of 4530 to 4550 in this up move. One needs to be cautious in taking long positions, if one is a short term player.
Buying 4400 calls on weakness and 4500 puts on rallies shall give quick returns for intra day / overnight positional traders.
The day's range for Nifty shall be 4380(Support) and 4550 (Resistance); Sensex shall be 15155 (Support) and 15777 (Resistance)
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