The benchmark indices ended the week on a strong note with the Sensex closing at 256 points higher to end at 14,521 after swing in the range of 14,559 and low of 14,179. The Nifty advanced 62 points to 4,313. Among the broader indices, the BSE Midcap Index was up 1.68% or 81 points and the Smallcap Index rose 0.82% or 45 points.

Buying was seen in capital goods, realty, metal and IT stocks. The market breadth was flat and the volumes were on the lower side as compared to previous 2?3 day session. The June Nifty future ended with a 12 point premium at 4326. For this week, the Nifty dropped 5.8 % and the Sensex ended 4.6 % lower. On the sectoral front, the BSE oil & gas index plunged 10.9 % and the BSE realty index shed 9.6 %.

The markets ended the week on positive note but on the weekly basis the Sensex ended 4.6 per cent lower, snapping its 14?week winning streak. Today’s rally could be read as a technical pullback after six days of continuous downtrend. The yesterday’s Put Call Ratio at 0.85 was also indicating that markets were slightly oversold and we could witness a temporary pullback.

Once again markets have closed at a very crucial point from where we could witness huge volatility. Markets have witnessed a smart pullback from their lows but the volumes were not so encouraging. The outlook for the coming week is cautious has markets are still trading below their important support level of 4360 & 4530 and very importantly Nifty is far below its short?term 5?day moving average of 4385 and 21?day moving average of 4435, which clearly suggests that markets are under pressure.

For tomorrow intraday support is 4215 and strong resistance is at 4360. A strong move with huge volumes on either side will give fresh direction to the market. Unless we see a break above 4430 fresh buying should be avoided.