The Nifty closed the last day of Aug series on a flat note after seeing huge volatility throughout the session. The Sensex closed at 15,781 up 11 points, after seeing an intraday high of 15,853 and low of 15,685. The Nifty shut at 4,688 up 7 points. It touched a day's high/low of 4707 and 4645 respectively.

Buying was seen in capital goods, pharma, and select technology stocks while private banking and power counters were draggers. The Sept Nifty futures ended at 4705 with 17 points premium.

The markets are still holding the momentum as major action is shifted from the frontline stocks to the midcap ones. The outlook for the new September series remains robust as there is no technical evidence that markets are topping out around the 4,700 mark.

Going forward we believe that markets will take time to consolidate around the 4600?4730 region before giving a fresh breakout on the higher side. It’s very important for the nifty to maintain above 4730 for some time to regain strength and confidence in the system that now market is heading to enter new zone.

Support for Nifty is placed at 4605 and 4540, unless we see major breakdown below these levels we don’t see the trend getting damaged. Resistance continues to be at 4730 and if nifty maintains above the level with huge volumes then next immediate target is 4820.

STOCK IDEA:

1) CENTURY TEXTILE (450): Buy and hold with a stop?loss of 420, resistance at 470, if the stock maintains above this point then it enters into a fresh breakout zone and the short term looks 510.

2) ESSAR OIL (147): Buy and hold with a stop?loss of 140, if the counter maintains above 152, then look for a target of 170.

3) REL.CAPITAL (826): Buy and hold with a stop?loss of 810, highly momentum stock, if the stock maintains above 860, then look for a target of 905.

4) UNITED PHOS (168): Buy and hold with an investment perspective, strong support is placed at 160?148 region, if the stock maintains above 173 in the near term then look for a target of 195?210.

NIFTY FUTURE DAILY CHART: The trend remains very strong; the only concern is that nifty is still trading below its intermediate top of 4730 from where significant selling was witnessed in the past. Going forward if nifty sustains above 4730 for some time then the next target could be 4770?4830 shortly. So wait for the right signal before shorting the market around the 4700 mark. Support is at 4615?4550 region, unless nifty breaks this level every fall is a buying opportunity.