The markets bounced back after yesterday’s biggest slide in more than a month. The Sensex closed at 15,035 up 250 points after trading between 14,740 and 15,134. The Nifty closed at 4,458 up 71 points or 1.62%. Among the broader indices - the BSE Midcap and Smallcap indices rose 2% each. Capital goods, realty, telecom and metal stocks saw good buying support in today’s rally. The market breadth was positive and the total traded turnover was higher at Rs 94,599 cr. as against Rs 91,347 cr. The Aug nifty future ended with 4 points discount.

After yesterday’s steep fall markets have shown some stability and are holding the 4400 mark. The trend still remains nervous as we don’t find any fresh triggers which will help the markets to sustain above the 4600 mark. There are lots of resistances at every higher interval and we believe that profit taking cannot be ruled out.

The current trend has turned very volatile and the range for nifty could be 4140-4650. Immediate support is seen at 4410-4360; unless we see a break below these levels we don’t see any fresh sell-off taking place. For tomorrow trade the resistance is placed at 4535-4550, stability above this level could bring huge short covering.

STOCK IDEA:

1) GESHIPP (259) – Buy and hold with a stop-loss of 245, this stock has consolidated in the region of 250-265 and is in the edge of giving a breakout above 265, look for short term target of 280 and medium term 310.

2) IDEA (77.70) – Buy with a stop-loss of 76, counter showing sign of revival resistance is at 81, if maintains above then look for 86.

3) IFCI (52) – Buy and hold with a stop-loss of 48, unless you see a break below this level we don’t see major correction in this counter, 54 is the resistance point if maintains above then in the short term target looks 60 and in the medium term 67.

4) ROLTA (167) – This stock is about to enter into a huge breakout zone, the stock has consolidated a lot and as a strong support at 140, unless you see a breakdown below this point every fall is a buying opportunity, in the short term target looks 180 and in the medium term 201.

NIFTY DAILY FUTURE CHART: Nifty is still above its important support of 4360 as shown below, unless you see a breakdown below this point we don’t see major sell-off happening. On the higher side 4510-4540 acts as a strong resistance point, if markets maintain above 4540 then next is 4610.