Nifty after opening on a flat note slipped as the day progressed but hovered around the 5700 level. It finally ended the day at 5701 down 48 points. The broader market slightly underperformed the benchmarks; S&P CNX 500 was down 0.90% and CNX Midcap was down 0.99%.

It was another day where markets continued with its time correction. We retain our earlier stance and feel that the current move is a part of the consolidation phase from the recent highs of around 5950. The trend has remained sideways with a negative bias for the last few weeks and no violation of levels has occurred for us to warrant a change of view. Another positive is that the short term technical indicators are at oversold levels indicating minimal downsides from the current levels.

The Midcap Index may continue to outperform the benchmark in the medium term. From the current levels, there is a fair chance for this index to give higher percentage returns compared to the benchmark. We continue to remain positive with target of 8900-9000.