The markets corrected for the third consecutive day on weak global cues amid volatility. Selling pressure was seen in capital goods, realty, private banking and select power stocks while oil marketing companies outperformed other large cap stocks. The Sensex closed at 15,467 down 84 points after trading between 15,628 and 15,392. The Nifty fell 0.37% or 17 points to settle at 4608. The broader indices also slipped in line with benchmark indices, down 0.3?0.7%. The market breadth was negative and the total turnover was very low compared to yesterday’s trade. The Sept nifty future ended with 10 points premium.

The short term trend is slightly nervous as huge pressure is build at higher levels and importantly global markets are not giving any positive signs. But today markets consolidated a lot around the 4600 region and ended with modest losses.

Going forward we need a solid trigger to lift the market sentiment which could drive nifty above the 4,700 level. Currently the trend is weak and we are in the range of 4450?4730 where it’s difficult to take a call which way the market is moving. Volumes are getting lower as participants are waiting for the right direction.

For tomorrow support for nifty is at 4580, traders can take a chance of buying nifty at lower levels with a strict stop?loss of 4535. Resistance area is 4640?4680.

STOCK IDEA:

1) CIPLA (270) – Buy with a stop?loss of 264, counter showing sign of revival, resistance is placed at 274, if the counter maintains above 274 then look for a target of 295.

2) ESSAR OIL (154) ? Buy and hold with a stop?loss of 147?145, resistance at 157, if maintains above then look for 165?180 in the near term.

3) IFCI (54) – This stock is currently consolidating in the range of 51?57 and very strong volumes are witnessed during last couple of days. Buy and hold with a stop?loss of 51, stock is getting ready for a big move, short term target looks 62 and in the medium term 67.

4) GLENMARK (219) – Buy and hold from an investment view, counter showing strong sign of revival, support at 211?205?190 levels and resistance is at 227, if maintains above then look for a target of 240?265.

5) PRATIBHA IND (208) ? Buy on dip and hold, this counter is in the edge of a major breakout, strong support at 180?160 region, in the short term target looks 235 and in the medium term 275.

NIFTY FUTURE DAILY CHART (4618): The trend slightly looks nervous. Strong support is placed in the region of 4580?4515 and nifty can be bought around this region keeping a strict stop?loss of 4480. Resistance is at 4680.