The benchmark indices ended on a flat note after a huge volatile session. The Sensex witnessed a swing of 234 points between an intraday high of 15,463 and low of 15,228 before closing at 15,375 down just 4 points. The Nifty shut at 4,572 up 4 points, after seeing a swing of 68 points between day's high/low of 4,596 and 4,528 respectively. Among the broader indices ? both BSE Midcap and Smallcap indices went up 1.4% each. FMCG, realty, power and metal stocks witnessed huge buying interest while oil & gas, banking and select auto stocks were under pressure. The market breadth was positive but the volumes were lower, total traded turnover was at Rs 75,663 cr. as against Rs 99,910 cr. The July Nifty future ended with 4 points premium and Aug Nifty future ended with 10 points premium.

The market trend is optimistic as global cues are coming out very positively and major action is seen in the midcap stocks also. Overall market is placed in a very healthy position but for a bigger rally to take place nifty has to cross and sustain above 4600?4640 regions. At this current situation we are seeing volumes getting lower due to lack of conviction that markets will sustain at higher levels. Hence, we believe that market players should more focus on midcap and defensive stocks at these levels rather trading in high beta stocks.

Nifty has strong support at 4510-4440 levels, unless we see a break below this point markets are safe and healthy and every fall is a buying opportunity. Major breakout will be seen only if markets sustain above 15600/4640 in the near future with huge volumes and strong market breadth, till then we see the nifty remaining in the range of 4140-4700.

STOCK IDEA:

1) IFCI (52.80) – Buy and hold with a stop?loss of 50 for an immediate target of 59 and then 64 in the near term.

2) INDIA INFOLINE (129) – Buy and hold with a stop?loss of 118, counter showing strong sign of revival, major resistance at 135, if maintains above then look for a target of 144 and 155.

3) GMRINFRA (147) – Buy and hold with a stop?loss of 137, counter has been consolidating for a longer time, if maintains above 157 then look for a target of 175.

4) RNRL (81) – Buy with a stop?loss of 79 or 77, resistance at 84 if maintains above then target looks 88-93.