The markets ended lower for the second consecutive day as huge selling pressure was seen in most of the frontline stocks. Capital goods, telecom, realty, auto, power, financials and technology counters were under selling pressure, while metal and oil & gas stocks witnessed buying interest. The BSE Sensex closed 174 points or 1.13% lower at 15,238, after seeing an intraday high of 15,600 and low of 15,174.

The Nifty closed at 4,583 down 1.17% or 54 points after seeing a high/low of 4693 and 4566. Among the broader indices - the CNX midcap index and BSE smallcap index fell 1.7 % and 2.2 % lower respectively. For the week, the Sensex gained 0.88 %—its fourteenth weekly gain. The Nifty June future ended with a 5 point premium. The IIP (Index of Industrial Production) data was encouraging as it came in at 1.4% for the month of April as against negative 0.75% in March.

This was the second consecutive session where we saw the markets under selling pressure around the 4700 mark and the market breadth was also negative. Now going forward in the coming week we believe that it’s very  important for the nifty to hold the 4550 level on the closing basis, if nifty trades below 4550 then there is a possibility that we could see fresh selling emerging and nifty might test 4480-4370 in the coming days.

Markets are trading at a very crucial point from where a 5% rally on either side is possible in a very short period of time. We believe that one should be very cautious in buying shares at higher levels. Buying around the support level is sensible as the undertone of the market is bullish.

For tomorrow, intra-day support for nifty exits at 4550, a trade below 4550 can bring pressure into the system. Resistance is placed at 4630 levels. Fresh buying trigger can be seen only if nifty breaks above the 4700 mark till then one should remain cautious.

And a major weakness will be seen only if markets break 4370/14500 level, until then every dip should be used as a buying opportunity.