"Markets opened positive and traded with lesser volatility than being experienced for the past 3 weeks, and closed positive at the higher end of the trading range of the day. As observed in yesterday's posting, this being the truncated week, tomorrow being market holiday on account of "Indian Independence Day" markets will trade in narrow range and might close flat to negative today, on profit booking strategy whenever there is a rally, this week. Nifty futures discount to the futures came down to 18 points from 34 points; shows that some of the shorts are out of the system. Caution to be exercised in adding positions on long side on rallies.
Immediate resistance is seen at 4388 to 4420 on Nifty for the day, and if this range is cleared with volumes and participation of all sectors and categories of stocks, then there will be confidence in the players that stability returned. Passing of Independence day celebrations peacefully, and the Left stand on support to Congress lead UPA government at Centre, since Indo - US nuke deal is becoming bitter between both the constituents of the government shall clear the fear on political risk.
Though the left have the track record of never withdrawing support and thus, allowing a government to fall, the risk is potential, as how and when political risk hits can never be anticipated / predicted. Such developments, if any, when happen definitely effect the sentiment and result in panic selling, which will be a golden oportunity to build portfolio of blue chip, growth stocks.
The day's range for Nifty shall be 4280(Support) and 4465 (Resistance); Sensex shall be 14720 (Support) and 15298 (Resistance)
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