The benchmark indices ended lower on huge profit booking at higher levels which drifted the markets to end near the day’s low. The Sensex fell 219 points after hitting the intraday high of 15,369 to end at 14,843. The Nifty dropped 1.5 % or 70 points to close at 4,398 after hitting an intraday high of 4,557. All the sectoral indices ended in red. Sell?off was witnessed in metal, auto, cap goods and IT shares. The Nifty July future ended at 4,413 with 13 points premium and the Aug Nifty future were at 4,411. The market breadth was negative and the total traded turnover increased 31.6% to Rs 1,19,647 cr. as against Rs 90,914 cr.

Markets today have witnessed a strong correction from their intraday top of 4,557 and ended near their day’s low. The current intermediate trend which emerged from the low of 3,918 still remains positive until Nifty holds 4,140 on the closing basis.

Today’s fall was anticipated with huge volume which is worry sign, but there was no major cuts seen in any Index pivotal. This kind of profit booking is usual when markets enter their resistance zone of 4510?4550 and this will continue for a day or two. Nifty has strong multiple supports at 4330?4240 and very extreme 4140 where buying could be done from an investment perspective.

If global cues remain negative tomorrow then we could see a lower opening but we believe that around 4300 strong buying should emerge. For tomorrow if nifty maintains above 4440, then we could see positive development.

INDEX MOVERS:

1) RELIANCE IND (1975) – The stock is still in a positive trend, can be bought with a stop?loss of 1940, resistance is at 1980?2025, if maintains above then look for 2075. But if trades below 1940 then this stock can create a huge panic in the market.

2) STATE BANK (1694) – Unless the stock holds 1650 it’s in a positive trend and on the higher side 1740 is the strong resistance point. Wait for the clear trend to emerge on either side and then take a call.

3) BHEL (2147) – If trades below 2145 decisively then sell with a stop?loss of 2190. The trend is weak unless it trades below 2230. Look for a downside target of 2080-2010.

4) HDFC (2402) – The trend is weak, can be shorted if trades below 2385 with a stop?loss of 2470 for a downside target of 2145-2065.

NIFTY FUTURE DAILY CHART (4,405) – Nifty has just closed near to its important support level of 4410 as shown below. If tomorrow nifty trades below this point then the possibility of testing 4310?4220 becomes high. One should wait and see how nifty behaves in a day or two before taking a fresh call. Above 4440 we could see positive development happening.