The benchmark indices ended with modest gain after a volatile session snapping a three day losing streak. The Sensex ended up 64 points at 15,074 after swing in the range of 14,864 - 15,218. The Nifty finished 0.7 % higher at 4,471 up 34 points. In the broader markets, the CNX midcap index rose 0.7 % and the BSE smallcap index ended 0.5 % higher. Auto, realty and metal stocks rose today.

The trend still remains cautious has huge selling pressure is witnessed at higher levels. Nifty is not able to sustain above the 4500 mark and faces huge selling pressure in the index pivotal. Going forward its very important that nifty maintains above 4510?4550 for a fresh development to happen.

Technically speaking the overall trend which emerged from the low of 3918 to the high of 4700 still remains intact as markets are in the correction phase and the trend which developed is not yet broken. It's just a temporary pause before developing a breakout. As we have seen that nifty is strongly holding the 4400 mark on the closing basis and this point should be used as a strong stop? loss for the near term. Because if markets decisively breaks this point on the closing basis then we could go for a sharp fall.

As we had clearly mentioned that markets are at the lower end of the channel and one has to be very cautious while creating fresh position. Resistance for Nifty is placed at every higher interval and unless we see a sustained move above 4600 every rise is a selling opportunity.

STOCK IDEA:
1) BAJAJ HIND (189) - The stock has been consolidating for some time in the region of 177?199 and currently in the edge of giving a breakout on the higher side. Strong support is placed at 177?170 regions; buy for the short term target of 202?220.

2) BRFL (184) - Buy and hold with a stop? loss of 170, resistance at 190, if maintains above then look for 197?218.

3) JINDALSTPOWER (2852) - Huge delivery based buying witnessed today, the stock has corrected 18% from the top of 3238 to the low of 2659 and is holding above its 50? day moving average of 2603. The stock should be bought from an investment perspective for a short term target of 2970?3100.

4) ROLTA (146) - Buy and hold with a stop? loss of 140 resistance is at 153, if maintains above then look for 170.

Nifty future daily chart: Nifty future is trading at the lower end of the channel from where a sharp fall could be seen. But markets are holding the important support level of 4390 on the closing basis. Buying should be very sensible and one should be very cautious if markets break 4390. Strong resistance is placed at 4520?4550, unless we see a sustained move above 4550 we don't see major development happening. Wait for the right direction and then take a move.