It was an extremely volatile session ahead of F&O expiry. Credit Policy was the non?event for the markets today, as RBI maintained the status unchanged. The Sensex ended down 43 points at 15,332 after hitting an intraday high of 15,463  and Nifty shut at 4,564 down 8 points after hitting an intraday high of 4,608. The broader markets outperformed the benchmark indices. The market breadth was positive and the total turnover crossed the 1 lakh cr. mark. The July Nifty future ended with 2 points discount and Aug Nifty future ended with 6 points premium.

The market trend still remains optimistic but the frontline stocks are facing a strong resistance above the 4600 mark. Going forward we believe that midcap stocks will continue to outperform and one should remain very cautious in building any fresh position in the market.

Technically there is no evidence that this uptrend is going to get over, but it’s just a mild correction after a massive move. Markets have to consolidate at lower levels before giving a fresh breakout on the higher side. Nifty has strong support at 4510?4440 levels, unless we see a break below this point markets are safe and healthy and every fall is a buying opportunity. Major breakout will be seen only if markets sustain above 15600/4640 in the near future with huge volumes and strong market breadth.

STOCK IDEA:

1) CORE PROJECT (129) – Buy on dip and hold with a stop-loss of 116 for a target of 145.

2) HCC (115) – The stock witnessed huge buying interest today, buy on dip with a stop-loss of 111-108 for a target of 127.

3) JINDALSOUTHWEST HOLDING (850) – Buy on dip with an investment perspective, strong support around 810-740 levels, in the near term target looks 940-1010.

4) PSL LTD (127) ? Buy and hold with a stop?loss of 110, counter showing strong sign of revival, short term target looks 145.