The benchmark indices ended in red on the back of weak Asian cues. The Shanghai Comp ended down 6.7% and Hang Seng was down 1.8%. The Sensex closed at 15,666 down 256 points after trading between 15,589 and 15,821. The nifty shut at 4,662 down 70 points or 1.4%. In the broader markets, the BSE small cap index rose 0.5 % while the BSE midcap index advanced 0.33 %. The breadth remained positive through the day. The Sept Nifty future ended with 7 points premium. IT, metal and oil & gas stocks took a beating today. The GDP numbers for the first quarter were announced stood at 6.1% versus growth of 5.8% in the previous quarter and 7.8% in Q1 of last year.

The short term trend still continues to remain positive but as we had mentioned that after seven consecutive straight rally markets were bit overbought and a correction was necessary to make the structure look healthier. In the current scenario the whole market trend depends upon Reliance Ind and State Bank's movement, if they trade negative going forward then it would very difficult for the nifty to maintain above 4700 mark. So for a trader it's very important to monitor these two index heavy weight counters and then take a call.

Going forward it would be healthy if nifty first consolidates in the range of 4550-4500 and creates a base before heading for a fresh breakout. We are seeing that major action is shifted from the large cap and high beta stocks to the small and mid cap stocks where lot of activity is happening. So we believe focus will continue to remain on the midcap front until the indices creates a strong foundation.

For the short term strong support is placed in the region of 4610-4470 area and in the medium term 4330. Unless these levels get breached we don't see major sell off happening in the Indian market.

STOCK IDEA:

1) APIL (526): Buy with an investment view, strong support placed at the 50-day moving average of 501, structure looks positive, if maintains above 535, then look for a short term target of 595.

2) IPSAT IND (23.50): Huge delivery volume witnessed today, buy with a strict stop-loss of 21.45 which is the 50-day moving average, short term target looks 26 and in the medium term 29.

3) ICSA (210) – Buy with an investment view, strong support at 185-170 region, counter is trading above its Bollinger band 199 and short term target looks 225-250.

NIFTY FUTURE DAILY CHART (4669): The trend continues to remain positive but if US and Asian markets correct then our market will also follow the same trend. Nifty future is still holding its first support of 4620 and the next support is at 4550, unless we break below this point we don’t see this intermediate trend getting damaged. On the higher side 4730-4770 will act as a strong resistance level.