It was the second day of strong performance by the benchmark indices on the back of positive global cues. The Sensex closed at 14,253 up 400 points or 2.88% and the Nifty surged 2.97% or 122 points to settle at 4233. The broader indices outperformed the benchmark indices, the BSE Midcap Index went up 4.15% and Smallcap Index rose 4.6%. All the BSE sectoral indices ended in the green. Huge buying was seen in infrastructure, capital goods, power, metal and oil & gas stocks. The market breadth was extremely positive and the total traded turnover also improved at Rs 80,071 cr. as against Rs 72,786 cr. The Nifty July futures closed with 7 points premium at 4,240.

It's a second day strong rally for the Indian markets after a steep correction of 12.5% from the recent top of 4480 to the low of 3918.

Nifty has indeed ended on a strong note around its 50? day moving average of 4235. Even the global markets are also providing some positive development which is driving the market sentiment.

Nothing has changed significantly in two days in terms of fundamental or economic survey, it's only that markets were extremely oversold and they are giving a relief rally. Currently we are in a trading zone of 4000?4450 and it's very important to see whether nifty sustains at higher level above 4280?4330. The outlook still remains pessimistic as huge sell? off cannot be ruled out at higher levels.

Once again markets are in a position of developing an up? trend and one has to see if nifty holds 4140?4080 on the downside and sustains above 4330?4450 to regain further momentum. The current moves suggest that bulls are holding their grip on the market and we could rally further.

Nifty Future Daily chart: (4240) - This is a second strongest closing for the nifty future. The current trend is giving us a hope of a short rally going forward, major resistance at
4310 if nifty sustains above this point then we could see 4410. On the lower side 4150?4100 zone will act as a strong support area and this relief rally could get in danger only if nifty future breaks below 4100, till then we could see markets consolidating between 4100?4500.