"Both indices opened with positive gap and traded in positive territory throughout the day, due to short squeeze, and closed positive for the day. One positive feature is indices have closed above 5DSMA and also above previous week closing. However, 20DSMA placed at 4485(Nifty) and 15332 (Sensex) offer stiff resistance in this bounce back rally. The next resistance comes at July closings 4528.85 (nifty) & 15550.99 (Sensex) for this uptrend. Volatility shall become part of trading during this month, as the players are divided on the future of earnings, inflation, exchange risk, GDP growth and Global slow down etc.,
Markets are likely to open positive and whether close above 20DSMA mentioned above shall give a clue as to the ending of correction. Portfolios can be hedged by long puts of 4500 in current series, to protect any unforeseen falls.
The day's range for Nifty shall be 4384 (Support) and 4482 (Resistance); Sensex shall be 15055 (Support) and 15401 (Resistance)
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