The benchmark indices ended lower on the June F&O expiry. The markets traded higher in the first half of the session but witnessed huge selling pressure in the last hour of trade. The BSE Sensex closed at 14,346 down 77 points, after seeing an intraday high of 14,578 and low of 14,261.

The Nifty slipped 1.19% or 51 points, to settle at 4242, after seeing a day's high/low of 4337 and 4221. Among the broader indices, the BSE Midcap and Smallcap indices were flat. Selling was seen in oil & gas, metals, auto, FMCG and pharma stocks while select banking stocks witnessed buying interest. The July Nifty future ended at 4278 with 36 points premium.

Markets ended lower on the June F&O expiry after a huge volatile session. We are see huge amount of selling pressure at higher levels from the FIIs. We have seen that FIIs have turned huge seller from 15 June in the cash segment which is keep the momentum down. This clearly indicates that markets will continue to remain under tremendous pressure going forward unless the FIIs stop selling shares in cash segment.

The markets are likely to keep an eye on monsoon, budget and first quarter results in the coming month. So we believe that aggressive buy at this current level should be avoided. The outlook for the new July series is not optimistic as the intermediate trend is weak but technically nifty is still holding some important support levels of 4180?4150?4090 which gives us a support for the near term.

Currently markets are trading in the positive narrow range of 4150?4330 and a strong move beyond this range with huge volumes can give us a clear picture. The current trend is positive but one should not be very aggressive in taking positions, wait for the nifty to sustain above 4330?4360.

For tomorrow intraday support for nifty is at 4205?4180 and resistance is placed at 4330?4360. Unless Nifty breaks above 4435 fresh buying should be avoided.