The benchmark indices ended with marginal gains after a volatile session. The Sensex touched an intraday high of 15,257, before closing the day at 15,103 points up 95 points. The Nifty hit a high of 4636, before closing 14 points higher at 4587. Among the broader indices both the CNX midcap and BSE smallcap indices were under pressure and ended lower. Buying was seen in capital goods, technology, cement, auto, select metal and oil & gas stocks. The Nifty June future ended with 7 points premium. For the week the indices were upover 3% each.

The outlook for the coming week remains a bit cautious at higher levels but the undertone remains optimistic as huge buying is witnessed across the counter at lower levels. We have seen fresh trend emerging in the Pharma, FMCG, Auto and Cement sectors and we believe that these sectors will outperform the market in coming days.

Markets are not signaling any top?out at this current stage but profit booking at higher levels can not be ruled out. The level 4650 on the Nifty continues to remain as a very strong resistance point as we have seen in the previous stages where markets corrected sharply from this major point as described below.

On 24 July 07 nifty corrected from the top of 4648 upto 4002 on 17 Aug 07, on 18 June 08 nifty corrected from 4679 upto 3790 on 16 July 08, on 12 Aug 08 4649 upto 2252 on 27 Oct 08. During this entire uptrend/downtrend we have witnessed that 3800 happened to be the important support level.

On the F&O side we have seen Nifty 4500 PUT adding 3 lakh shares in open interest suggesting that 4500 should act as a strong support area. If nifty breaks 4500, then we might see selling pressure emerging.

For tomorrow’s intra?day trading, support for nifty is at 4520 and resistance is placed at 4650. Fresh buy should be avoided above at this stage as one has to monitor for few days as to how Nifty behaves above its very important resistance point of 4650. Sectorally, Pharma, Cement, Auto & FMCG stocks are giving strong evidence of a base building and a fresh breakout at this situation.