The benchmark indices ended higher after an extreme volatile session. The Sensex closed at 14,645 up 152 points after trading in the range of 14727-14355. The Nifty shut at 4341 up 1.16% or 50 points. Among the broader indices, the BSE Midcap Index went up 51 points and the Smallcap Index gained 17 points. The market breadth was mixed and the cash volumes were lower compared to previous days. All the sectoral indices ended in green. Realty, banking and auto stocks led today’s gains. The Nifty July future ended with 1 point discount at 4,339.

Indian markets are trading extremely volatile ahead of the Union budget. It has become very difficult to point which way the market is moving. If one looks at the trading pattern for the last ten trading sessions, nifty has been in a narrow range consolidating between 4140 – 4440 finding direction for a healthier move. Markets are waiting for a trigger to lift the momentum which we believe that on 6th July we could see the result.

Technically markets are poised and it would be a difficult call to take in such a narrow range. The best strategy would be to wait for the markets to settle down or rather play in the Option market by selling out of the money call option or buying lower Put as the volatility has increased.

For tomorrow the support for nifty is at 4305-4270 region a trade below these levels could bring selling pressure. And intra-day resistance is placed at 4420 and a trade above this point could bring huge buying in the frontline stocks.

Nifty Future Daily chart: (4338) – The trend still remains cautious as nifty future is still trading below some important resistance level of 4380-4450. Unless nifty break and sustains above 4450 fresh buying should be avoided. On an intra-day basis 4300-4270 should act as a strong support area.