The benchmark indices moved in a small trading range throughout the day. After opening at 5860, Nifty made a high of 5906 which was to be the intra day high. It then moved sideways with a negative bias to finally close the day lower at 5874 down10 points. The broader market outperformed the benchmarks; S&P CNX 500 was down 0.06% and CNX Midcap was up 0.16%.

Last week, we had correctly anticipated the low of 5695 and the Nifty movement thereafter has only justified our bullish stance. The coming week promises to be a thrilling contest between the bulls and bears. As we had mentioned in our earlier reports the zone of 5920-5950 remains an important ceiling for the Nifty. A break above this zone will result in the following 1) Confirm the start of a new trend which started from last week’s low of 5695 in the medium term. 2) It would also provide the necessary impetus for a continued upmove in the short term as well. Hence, the winner of this see saw battle will provide the market with the next directional thrust. We expect the bulls to win eventually.

The Midcap Index is likely to remain an outperformer in the medium term and could end up giving the highest percentage returns if Nifty manages a breakout. We retain our positive stance in the medium term with target close to 8900-9000.