The benchmark indices ended lower for the second consecutive on the back of weak US and Asian cues. The Sensex closed 147 points lower at 11,873 after swinging in the range of 11935?11695. The Nifty shut down 1.15% or 42 points to settle at 3,593. Among the broader indices the BSE Midcap Index was up 15 points and the Smallcap Index rose 23 points. Selling pressure was seen in oil & gas, technology and capital goods stocks, while buying was visible in realty, auto and FMCG.

Inflation for the week?ended May 2 has come in at 0.48% as against 0.7% week?on?week.

Markets are still caught in the trading range of 3500?3700 but major action is shifted to the midcap space. A major development can be seen only if Nifty manages to break this trading range. Going ahead of the election results markets will continue to trade with extreme volatility and it will be very difficult to catch the trend.

The FIIs continue to remain positive till the day which is helping the market to hold the momentum. The outlook still remains cautious at higher level but buying is sensible on dip. Currently if we see markets are in the process of creating a base before giving a fresh breakout on the higher side.

For intra?day support for nifty is at 3550 and resistance at 3660. Markets are waiting for a trigger and we should get that direction some time next week.

Sectoral View: Reality stocks are showing strong base formation at lower levels. Stocks like DLF, HDIL and IBREALESTATE can be bought on dip with an investment view.

Metals are under severe pressure as commodity markets decline. Sterlite looks very weak in this category.

Stock View: APIL, BEML, CENTURY TEXTILE, DCB, HOTEL LEELA AND LITL LOOKS ATTRACTIVE AND A SAFE BUY AT THIS JUNCTURE.