The benchmark indices ended flat after trading in a very narrow range. The Sensex swung between day's high of 14,028 and a low of 13,819, before closing the day at 13,913 up 26 points. While the NSE Nifty shed 0.95 points to close at 4,237, after swinging between an intraday high of 4,270 and low of 4,205. Among the broader indices – the BSE Midcap Index gained 2.83% or 134.47 points and the Smallcap Index rose 5.01% or 276 points. Buying interest was seen in realty, pharma, metals, auto and oil & gas stocks.

The benchmark indices are consolidating at higher levels before giving fresh breakouts. But the undertone of market is bullish as the action is shifted from the frontline stocks to the midcap & small cap stocks. Technically markets are overstretched and now even the midcap stocks are entering into the overbought zone. Buying into midcap & smallcap should be very selective as one can get trapped at higher levels.

The outlook for the May expiry still remains optimistic, till nifty holds 4160. On an intra?day basis 4270 will act has a resistance point. If nifty crosses and sustains above 4270 then next hurdle is at 4320. A strong move is expected only if nifty remains above 4320.

On the Future & Option side, we have seen huge open interest build in the 4300 Call Option and huge position added in 4200 Put Option. This clearly suggests that markets will remain choppy in this narrow range of 4200?4300 and a major action will be seen only if nifty future moves beyond these ranges on the either side.

Nifty Future Daily chart: (4241) – On the future side 4200 PUT has added maximum open interest. It means that players are betting that if 4200 breaks then we could witness huge selling pressure. And on the higher side 4300 CALL has added huge open interest, indicating that 4300 will be the major resistance for May expiry. Trade accordingly to the levels mentioned.