The benchmark indices ended lower for the third consecutive day due to heavy sell? off witnessed in the RIL stock, closed at 2178 down 7.7%. The sell? off in the Reliance stock took place after the Bombay High Court upheld the maintainability of RNRL's plea and asked RIL to supply gas to the latter to the tune of 28 mmscmd for  17 years at a price of USD 2.34 per mbtu. On the other hand, RNRL surged 24 % to 108.

Major selling was seen in oil & gas, capital goods, metals, auto and reality stocks. Select buying was seen in financial and cement counters. The negative cues from global markets also weighed on the Indian markets as deep cut was seen in the Asian and European markets, the US futures were also trading down. The BSE Sensex ended below the 15,000 mark down 362 points at 14,875 and the Nifty ended below 4500 down 99 points at 4,484. Among the broader indices ? the CNX midcap index fell 1.3 % while the BSE smallcap index skidded 2.1 %.

The Nifty June future in the end ended with 36 point premium at 4520.

This is the third consecutive session where we saw markets under selling pressure and consolidating inline with the global markets. Markets are cracking down but we don't see bigger volumes taking place in the cash segment. As we had mentioned that 4550 is the important point for the nifty to be held on the closing basis and trading below this point can bring weakness into the system. But now when nifty has ended the day at 4484 we see that weakness might continue for a day or two. This kind of correction is very healthy for the Indian markets as they have not consolidated during this entire rally and buying is sensible in the region of 4370?4260 from an investment perspective.

For tomorrow, intra? day support for nifty exits at 4450, a trade below 4450 can bring selling pressure into the system and we might test
4370. Resistance is placed at 4530?4580 levels. And a major weakness will be seen in the market if 4370/14500 level gets broken, until then every dip should be used as a buying opportunity.