Spectacular recovery was seen in the markets after two consecutive days of fall. Huge buying was visible across all the sectors, especially Realty, Metal, FMCG, Auto and infrastructure supported the Nifty to end above the 4500 mark and the Sensex above the 15,000 level successfully.

All the sectoral indices ended in the green.

The current trend is optimistic but one should be very cautious while building new positions around this levels as this current trend is following the positive global cues and bit of good earnings.

It’s very important for the markets to sustain at higher levels and major fresh triggers which will bring fresh buying from the FIIs and domestic players along with great momentum from the local players then only nifty could breach the important resistance level of 4700.

Till then we will remain in a trading band of 4100?4700 and in this zone any significant fall should be used as a buying.

Nifty has strong support at 4450?4410 and strong resistance above 4550?4590 area. Markets have to sustain above 4600 for fresh positive momentum. Today we have the Reliance Ind earning which has to be closely monitored as the market movement will mainly depend on the results.

STOCK IDEA:

1) ABAN (966) – Huge buying happening in this counter, buy on dip with a strict stop?loss of 920, resistance at 975, if maintains then look for 990?1060.

2) SUZLON (96) – Buy on dip and hold with a stop?loss of 90 major resistance at 102, if maintains above then look for a target of 109?115.

3) WELSPUN GUJ (208) – Buy with a stop?loss of 198 resistance at 215, if maintains above then look for a target of 225?235.