The benchmark index ended on a weak note sliding 241 points to 11,876, it touched an intra?day high of 12,180 points. The Nifty fell 1.72% or 63 points to settle at 3,620 after hitting a high of 3710. The BSE Midcap Index ended down 0.4% and the BSE Smallcap Index ended down 0.9%. Banks, metals, telecom and IT shares led the fall in the markets today. For the week, the Sensex was however up 4.1 , Nifty ends up 4.2% and Nifty Junior up 4.2%. And sectorally, the BSE Metal Index up 14.5%, BSE Cap Goods Index up 7.2% and BSE Bank Index up 5.3%.

Inflation saw a rise again. Inflation for the week?ended April 25 came in at 0.7% versus 0.57% last week.

The nifty is finding difficulty to sustain above the 3700 mark as the markets have corrected for the second time from the top of 3710. The domestic funds and the local players are booking profit and unwinding their positions ahead of the election results next week. It’s veryimportant for the nifty to sustain above the 3615 to keep the momentum positive.

Now going forward in the next week, we believe that volatility will increase ahead of an important event. And the trading band would be 3715?3520 on the lower side. And 3520 is also the 13?day Exponential moving average for the nifty. The technical oscillators are giving anegative divergence, but the undertone of the market still remains bullish as major action is shifted from the frontline to the midcap and small cap space. The intermediate trend is still intact as nifty is still trading above its long term 200?day moving average of 3370.

For intra?day support is placed at 3580 and resistance at 3660, so wait for the clear trend to emerge and then take a call on the market. Now going forward one should be cautious in building positions as the trend will be very volatile and trades need to maintain strict stoploss.As the markets are placed at a very crucial level from where a 5?10% fall on the either side is possible in a very short period. If 3580 is broken in coming days then the fall could be steep and one has to be cautious at these levels. And major positive action could be seen only if nifty sustains above the 3720 mark. Until then maintain a low profile.

We have seen profit booking in metals sector as the commodity prices are cooling off a bit, but the reality sector is showing some kind of resilience at lower levels. Stocks like HDIL, IBREALESTATE and UNITECH looks an attractive buy at lower levels with appropriate stop?loss.