The markets ended marginally higher after a huge volatile session. The Sensex lost 316 points from an intradayhigh of 11,339, before closing the day at 11,023 up 76 points. The Nifty shut at 3,384 up 0.4% or 15 points and it lost 105 points from the day's high point of 3,489. In the Broader indices, the BSE Midcap Index was up 33 points and the Smallcap Index closed 22 points. Buying was seen in shares of banking, IT and capital goods, while selling seen in metal, auto and pharma stocks. The volumes were lower as compared to last two days and the market breadth was negative. On a weekly basis, Sensex closed up 2% and Nifty up 1.26%. While the broader indices outperformed during the week, CNX Midcap Index up 4.7%, BSE Small? cap and Nifty Junior Index up 4.5%.

The bulls are still holding the momentum and this strong uptrend can get weak only if nifty breaks the first support of 3,310. Until then we could see the markets trading sideways and in a tight range band of 3300?3520. A clear and faster direction will emerge only if nifty breaks this narrow range. Now technically the RSI is at 69 and is slightly in an overbought territory. Secondly nifty is facing resistance above its 200? day moving average. Going forward one has to see if nifty manages to sustain above its 200 day SMA and then create new position. What we believe is that nifty should correct at least 5?8% from the current level and consolidate at lower level before making a fresh move.

Markets have become extremely volatile in last couple of days and going forward we believe that this volatility will continue and markets will go up very rapidly and will come down very rapidly. It's certainly not the region to create fresh positions. "The immediate short? term support for nifty is placed at 3,310 - 3,230 region and a fall below will create more pressure and nifty can fall upto 3,155 - 3,110 in coming days, which could be the best level to enter for a medium term investors . Strong intra? day resistance is at 3,420.

Sectoral Comment: BANK NIFTY (5,056) - This index has given a trend line breakout above the 4,900 mark and we have witnessed huge short? covering and fresh buying from the FIIs in the private and PSU banks in the last five trading sessions. This index is still looking strong and now in coming days if it starts trading above the 5,214, then it can test 5,500?5,850 levels.