The markets ended higher ahead of F&O expiry after a volatile session. Buying was witnessed in the second half of the session. Power, capital goods, pharma and realty stocks witnessed buying interest. The Sensex closed up 99 points to 14,442 after trading in the range of 14,207 – 14,479. The Nifty rose 46 points and shut at 4,293 after hitting a low/high of 4218 and 4306.
Among other benchmarks, the BSE Midcap Index was up 117 points or 2.38% and the Smallcap Index closed up 2.26% or 126 points. The market breadth was healthy but volumes in the cash segment were not so encouraging. The June Nifty future ended at 4305 with 12 points premium and July Nifty future ended at 4310 with 18 point premium.
Tomorrow being the F&O expiry we could see more of a short? covering in the reality, metal and auto space which could drive the market higher. The trend still remains weak as nifty is still trading below its short? term 13, 21 days moving average of (4360 & 4445). Going forward it is very necessary that nifty sustains at a higher level with healthy market breadth and convincing volumes.
Currently, markets are trading in the positive narrow range of 4220/4330 and a strong move beyond this range with huge volumes can take nifty close to 4400 regions. The current trend is positive and one should not be very aggressive in taking positions. Sectors like Education, Sugar, PSU Banks and Power stocks look a very attractive buy.
For tomorrow intraday support for nifty is at 4270/4220 and resistance is placed at 4330/4360. Unless Nifty breaks above 4435 fresh buying should be avoided. Every rise should be used as an opportunity to exit the long position and going short should be avoided for some time as the markets could give us a surprise on the upper side.