Market View & Outlook: The markets witnessed huge buying interest on the first day of August series and closed on a strong note. It touched a new 2009 highs of15,732 on the back of strong earnings and Nifty ended above the 4,600 level. The Sensex surged 282 points or 1.83% to settle at 15,670. The Nifty shut shop at 4636 up 1.42% or 65 points, after touching a day's high of 4669. Buying was seen in oil & gas exploration, banking, FMCG, capital goods, technology, metal and select pharma shares. The Aug nifty future ended with 17 points premium.

The first day of the Aug series started on a positive note. The nifty managed to end above its important resistance point of 4,610 from where markets were witnessing selling pressure for some time. Now going forward it's very important for the nifty to sustain at higher levels and try to maintain the 4,450 mark on the closing basis. The outlook for the coming week looks very bright as we have seen strong momentum in the index leader, Reliance Ind as the counter closed at 1,974 up 3.8% after a long time.

Going forward if Reliance maintains above the 2000 mark then it's confident that the Indian markets will see a fresh breakout on the higher side. We were witnessing strong performance from the FMCG, metals, banking, auto and technology shares but today we have seen the oil & gas index giving a strong drive. All this clearly suggest that markets ready for a big move of around 5?7% from this current level and any sharp decline should be used as a buying opportunity.

On the downside Nifty has strong support at 4550?4440 region and any sharp decline around this area should be a buy keeping a strict stop? loss of 4410. On the higher side Nifty should sustain above 4700 decisively with huge volumes and positive market breadth for a fresh development.

Sectorally Auto index is in an overbought zone and we could witness profit taking at higher levels. Banking index shows very strong relative strength and could outperform in coming days. Currently the bank nifty is at 7544 and near term target looks 8000?8300.

The oil & gas index is at 9,480 and if this index maintains above 9,550 then we could witness a major breakout happening in the oil & gas space, as this sector has been consolidating for some time. Hence, we believe that this forthcoming rally could be lead by the banking and oil & gas space which could be the leaders.

1) KIRL FERROUS (25.80) - Buy, huge delivery volumes witnessed after a long time of consolidation, if sustains above 26 then we could see the counter moving in a new range, short term target looks 35. Support is at 21.

2) HDFC (2536) - Buy on dip with a stop? loss of 2450, structure looks positive, near term target looks 2620?2740.

3) INDIAN OIL (547) - This scrip has been consolidating in the region of 510?580 for quite some time, now it's showing sign of giving a breakout on the higher side, buy on dip with a stop? loss of 515 for target of 610?650.

4) RELAINCE IND (1955) - Buy on dip and hold with a stop? loss of 1880 for a target of 2050?2140. Resistance is at 1975 if maintains above then it gives a fresh breakout.

Nifty future daily chart (4,653): Nifty future is still below its 2009 high of 4,703, but we are trading at the upper band of a breakout which could happen in coming days. Going forward its very necessary for the nifty to sustain at higher levels and hold the level of 4510 and 4410 to achieve an immediate target of 4830. This trend continues to remain positive and very strong unless nifty breaks 4480 in the short term.