The benchmark indices ended on a weak note after a volatile session. Huge selling pressure was seen in oil & gas, metal, reality and power stocks. The BSE Sensex closed lower 196 points at 14,326 after trading in the range of 14,668?14,269. The Nifty shut at 4,235 down 78 points or 1.8%. Among the broader indices ? the CNX midcap and BSE small cap index finished lower 0.4 and 0.33 % respectively. The trading volumes were extremely on the lower side and the market breadth was flat. The June Nifty future ended 10 points discount at 4,225.

Technically markets are in a downtrend as they are trading below their short?term 5, 21?day moving average of (4334 & 4437). Now if we look at the trading pattern on the daily basis, markets are inching lower every day and they are not able to sustain at higher levels as there is lack of buying interest. The market breadth is also not improving and the trading volumes are getting lower.

The trading band for the market in the near future seems 4400?3900 due to lack of fresh triggers and weak market breadth. The FIIs have also turned negative from 15th June after the Bombay High Court directs Reliance to sell gas to RNRL at $2.34. Reliance Ind corrected almost 18% from its top of 2360 till today and simultaneously nifty corrected 8.5% from the high of 4600 on 15th June till today which is a healthy correction. But technically both the charts have turned negative and are signally a major fall from here onwards, so we maintain a Cautious view on market for the short?term.

For tomorrow intraday support is 4180 and strong resistance is at 4310. A strong move with huge volumes on either side will give fresh direction to the market. Unless Nifty breaks above 4435 fresh buying should be avoided. Every rise should be used an opportunity to go short or exit long position.

We believe that around the 4100 region Nifty must bottom out temporarily and should witness smart buying interest and if the market fails to sustain that level then we could see a major sell?off which could take nifty to 3825 levels.