The markets ended lower on profit booking after witnessing a rally of 12% in the last six trading sessions. The Sensex fell 128 points to close at 15,062, after trading between 15,234 and 14,955. The Nifty lost 33 points to end at 4,469. In the broader markets, the BSE small cap index rose 0.2 % and the CNX mid cap index gained 0.1 %. Selling was seen in technology, oil & gas, power, banking, realty and select telecom stocks.

However, buying was witnessed in metal stocks. The market breadth was mixed and the Nifty July future ended with 2 points premium. Markets are quite strong and there is no evidence that this short-term trend is over, it's only that markets are consolidating after a sharp rally witnessed in short duration. The trend is positive as markets are holding above their short term 50-day moving average of 4,296.

The 12% rally has been very quick and going forward we believe that markets should correct a bit and consolidate around the 4300 mark before continuing its upward journey. Going forward 4,510 will act as a very strong resistance point, if nifty manages to sustain above this level with huge volumes and positive market breadth for some time then we could witness a 5-10% rally from this level.

On the downside nifty has strong support at 4310 & 4260. Unless we see a strong move above 4510, maintain a low profile and any sharp dip should be used as a buying opportunity. This uptrend is safe until nifty holds 4140 on the closing basis.

STOCK IDEA:

1) PUNJ LLOYD (233) - Huge buying witnessed in this counter, buy with a stop-loss of 221 or 217, strong resistance at 235, if maintains above then look for a target of 250-275.

2) MRPL (85) - Buy on dip & hold with a stop-loss of 78, huge delivery volume witnessed today, resistance is at
90, if maintains above then next level is 95-105 in the near term.

3) RCOM (266) - Buy with a strict stop-loss of 255, strong resistance at 275, if maintains above this point then next level could be 295-315.

4) BAJAJ HIND (170) - The closing is very strong for the counter, going forward if maintains above 170 then buy with a stop-loss of 160 for a target of 205.

5) JPASSOCIATE (224) - Huge delivery volumes witnessed, buy with a stop loss of 217 for a target of 250.

NIFTY FUTURE DAILY CHART (4,473) - In the very near term 4410 acts as a very strong support as shown below, if this level is broken then next support is at 4310-4110. The trend is positive and very strong, maintain your long position with a strict stop-loss of 4410 and on the higher side if 4520-4550 is breached and sustained then look for a stronger rally going forward.