The Markets consolidated after two days of strong rally and ended flat. The Sensex ended the day at 14250 down just 3 points after witnessing a swing of 323 points between day's high/low of 14,493 and 14,169. The Nifty touched the 4300 mark in early trade and couldn't sustain at higher levels and ended the day at 4,231 down just 2 points after seeing a swing between 4305 and 4205.

Among the broader indices ? the BSE Mid? Cap index was up 0.89% and the BSE Small? Cap index was up 0.84%. Buying was seen in auto, oil & gas, healthcare and consumer durable stocks. The market breadth was positive throughout the day and the total traded turnover was higher by 19% at Rs 95,168 cr. as against Rs 80,071 cr.

The short? term trend which emerged will remain intact until nifty holds 4180 on the closing basis. Markets are consolidating after a sharp rise of almost 387 points from the low of 3918 in a short time. Even the US markets are providing some positive development and S&P 500 has given a fantastic closing yesterday around 932. Going forward if S&P 500 maintains above 925 then there is a possibility that it may retest the 1000 mark. And if the Dow Jones index maintains above 8600 then we could see a strong rally emerging in the US markets going forward.

As mentioned earlier that this is a relief rally and markets are still in a trading band of 4000?4450 and it's very important for the Nifty to sustains at higher level above 4330 to regain more strength. Fresh selling and profit taking at higher levels cannot be ruled out so one should maintain their long positions with appropriate stop? loss.

On the downside nifty has strong support at 4180?4110 and faces resistance above 4305?4330. It has to sustain above 4330 to regain further momentum.