The markets had opened lower following negative global cues but recovered in the second hour of session and ended on a flat note. The Sensex shed 2 points to settle at 14,324, after seeing an intraday swing of 14,394 and 14,016. The NSE Nifty closed at 4,247 up 12 points after touching a day's low of 4,143. In the broader market, the BSE small cap index shed 7 points while the CNX midcap index ended 17 points higher. Buying was seen in oil & gas, power and select financial stocks, however, metal, realty, telecom and select technology stocks remained under selling pressure.

Technically the intermediate trend is down but as we are heading near to the June F&O expiry markets witnessed some short covering due to which we saw nifty bouncing from the intra?day low of 4146. The cash volumes were not so encouraging and the market breadth was also weak throughout the session, which clearly suggests that the trend is weak and markets may witness selling pressure at higher levels. It’s necessary for the market to sustain at higher levels to gain further momentum.

Going forward the trading band for the market seems 4500?4100 and a strong move beyond this range with huge volumes will set a new direction in coming days. We still maintain a Cautious view on market as global markets are not supportive and selling pressure is also build in the commodity space.

For tomorrow intraday support for nifty is at 4220?4175 and resistance is placed at 4280?4330. Unless Nifty breaks above 4435 fresh buying should be avoided. Every rise should be used an opportunity to go short or exit long position. Till the June F&O expiry we believe that a sharp fall should be used as a buying opportunity keeping a strict sop?loss of 4150/4110.