The benchmark indices ended lower on the back of profit booking in telecom, technology, oil & gas and financial stocks. The Sensex closed at 14,060 down 241 points after trading in the range of 14405?13976. The Nifty shut at 4270 down 48 points or 1.1% after hitting a low 4244 and a high of 4362. The broader markets outperformed the benchmark indices. The BSE midcap index surged 6 % while the BSE small cap index rose 8.8 %.

The bulls are still holding the momentum as huge buying interest is shifted from the frontline stocks to the midcap stocks. The momentum in the market is encouraging as the investors are becoming more positive and ready to take risks even after a sharp rally witnessed in the market.

The undertone still remains optimistic as huge money is sitting on the sideline and is been invested at every lower level from the FIIs and Insurance. We are witnessing huge profit booking in the large cap frontline stocks and it would be advisable to stay away for a while.

There is lot of midcap stocks attractively valued at these levels.

Currently the FIIs are continuously on the buying side and the domestic funds are booking profit at these levels. Markets are overstretched but there is still value buying happening at lower levels. A big fall in the market should be utilized as a buying opportunity.

For the near term support for Nifty is at placed at 4110?4070 and resistance is 4320?4380. And for the Sensex support is at 13500 and resistance at 14220. A major development will be seen only if nifty moves on either side of the levels mentioned.

Auto, Cement, Fertilizer & Metal stocks have shown huge buying interest in today’s session and stocks related to these sectors should be bought at lower levels.

Stock View: DCHL, DCB, KFA, EKC, EVERON SYS, FSL, MOSER BAER, ROLTA, SUZLON, WELSPUN GUJARAT can be bought on dip as we could witness more action in these counters.