The markets ended lower after two days of sharp rally. Markets remained in a narrow range and the trend was very choppy. Selling was seen in realty, FMCG, IT, auto, pharma, bank, power, cement and sugar stocks. However, buying was seen in oil & gas stocks. The Sensex was down 107 points at 15412; it remained in the range of 15,535 and 15,367. The Nifty was down 25 points at 4580. It touched an intra day low of 4559. In the broader markets, the BSE smallcap index rose 0.4 % and the CNX midcap index ended 0.2 % higher. The market breadth was positive but the total traded volumes were lower to Rs 85,916 cr. as against Rs 89,493 cr. For the week, the Sensex gained 1.7% and Nifty advanced 2.2%.

The trend still remains bit cautious as Nifty finds lot of selling pressure in the region of 4600?4700. The global markets are showing positive development but Indian market continues to under perform. As we don’t see any fresh triggers for the market to lift the sentiments the outlook for the coming week continues to be in the range of 4400?4730. Unless we see a strong closing above 4640 fresh buying should be avoided.

At this current scenario we are not very bullish on the market but stock specific action can be seen. The Oil & Gas space and the mid?cap technology continue to look very bullish. Stocks like Ongc, India Oil, VideoInd, Gail, Cairn and Reliance Ind looks a very attractive buy on dip.

For the next week nifty has strong support at 4540?4460 region, unless you see a break below these levels there is no threat to the current development and resistance is placed at 4640?4730.

STOCK IDEA:

1) CAIRN (250) – Buy on dip and hold with a stop?loss of 235 for a target of 280. Resistance is at 255, strong up move can be seen if maintains above 255.

2) IFCI (53) – Buy on dip and hold with a stop?loss of 50, huge delivery based volumes seen, short term target looks 57 and in the medium term 65.

3) PRAKASH IND (140) – Huge delivery based volume witnessed, buy and hold from an investment view, strong support placed at 122?115 region, short term target looks 170.

4) RELIANCE IND (2036) – Buy, the stock is in the edge of giving a strong breakout above 2065, if it maintains above 2065 then look for next target 2130?2180. Strong support is placed at 2005?1990 levels.

5) UNIPHOS (174) – Buy on dip and hold with an investment view, strong support is placed at 160?150 region, short term target looks 190 and in the medium term 220.

Nifty future daily chart (4575): Nifty future continues to find strong selling pressure above the 4600 mark. The short term trend is bullish but it’s very important that nifty 4610?4640 for further fresh development. The next target for nifty future is at 4730 & 4770. On the lower side 4515 should act as a very strong support area.