The markets ended on a very strong note on disinvestment hopes which the markets had expected from the first Union Budget 2009-10. The Sensex touched a high of 14,800 and closed the day at 14,745 up 495 points or 3.47%. The Nifty gained 143 points or 3.39% to settle at 4375 after touching a day's high of 4390. The market breadth was positive throughout the day and the total traded volumes increased to Rs 98973 cr. as against Rs 95,168 cr. The Nifty July futures ended with 23 points premium at 4398. All the sectoral indices ended in green. Today’s rally was largely led by gains in auto, banking, realty and IT stocks. Positive global cues also brought confidence among the traders which supported this rally. For this week, both the indices gained around 9%.

Markets have closed on a very strong note and going forward if global markets continue to remain positive/stable then we could see Indian markets trading higher from current levels. This has been a very sharp move from the lows of 3918 to the high of 4390 in five trading sessions and going forward markets need consolidation at lower levels.

Markets are still in a trading band of 4000-4500 and it’s very important for the Nifty to sustain at higher level above 4500 to regain more strength. Fresh selling and profit taking at higher levels cannot be ruled out so one should maintain their long positions with appropriate stop-loss.

On the downside nifty has strong support at 4310 and faces resistance above 4410-4440. If this level is breached then nifty could test 4480-4530.

STOCK IDEA:

1) MAX INDIA (213) – Buy on dip & hold from an investment perspective, strong support at 195-180 levels, short term target looks 235-270.

2) NUCLEUS SOFT (94) – Buy on dip counter showing sign of revival, support at 78 short term target 115-130.

3) BHARTI ARTL (826) – Stock has broken the range and given a breakout above 795, buy on dip with a stop-loss of 795 for a target of 865-885.

4) DLF (333) – Buy with a stop-loss of 325 or 314 for a target of 345-360.

Nifty Future Daily chart: (4381) – Nifty future has closed on a strong note but going forward if maintains above the 4420 then we could see 4480. On the lower side 4310 should act as a strong support.