The benchmark indices ended on a strong note as sharp up move in US markets and in Asian markets lifted the market sentiment. The Sensex surged 453 points or 3.38% to settle at 13,853 and the Nifty shut at 4111 up 3.46% or 137 points. In the broader markets, the CNX midcap index rose 3.6 % and the BSE smallcap gained 4.4 %. All sectoral indices ended in the green. Heavy buying was witnessed in metal, realty, infrastructure, banking and oil & gas stocks. The Nifty July futures also ended into premium with 23 points.

The intermediate trend still remains gloomy but as we had mentioned that markets are little bit oversold and chances are that we could witness a bounce back from these levels. Today's up move was largely inline with the global market rally as strong move was seen in the US and Asian market. If global markets continue to show strong performance then there is a possibility that Indian markets too will show stability.

The turnover is lower and today what we saw was the first round of short covering in most of the battered down stocks. The closing for the Nifty future is very strong but going forward its very necessary that market sustains at higher level above the 4170 level for a next target of 4240. This downtrend could turn positive only if nifty maintains above
4240?4280 will huge volumes and positive market breadth. Till then every rise is a selling opportunity.

On the downside 4050 & 4005 should act as a support in the near term, a fall below this level could again bring severe selling pressure.

So hold your long position with a strict stop? loss of 4000.

Nifty Future Daily chart: (4135) - Today's closing is strong but going forward its necessary that nifty maintains above 4190 to continue further momentum. The trend is weak as markets need fresh triggers to sustain at higher levels, so we believe that nifty will face strong selling pressure around 4240?4300 zone.