Sentiment turned positive as more evidence of economic recovery trickled in. With inflation still in negative zone and infrastructure posting a 6.5 per cent growth, analysts expect the pace of economic recovery to gather more steam in next couple of quarters.
The S&P CNX Nifty fell below 4,500 in the afternoon trade due to selling in realty, metal and banking shares. However, the index recovered after noon to close at 4,514 on the back of recovery in index heavyweight Reliance Industries. The market is expected to be range-bound. Support for the Nifty is seen around 4,450 and resistance above 4,600.
Expects the market to be in a consolidation mode and remain range- bound for a couple of weeks with support at 4,450. The Nifty will breach 4,600-4650 levels only after consolidation. The market is in a no-trade zone and hence any downside is limited.
The impact of poor RIL results is likely to be short lived. Use sharp corrections to accumulate outperforming counters.
The Nifty is trading in a narrow range of 50-60 points with upside resistance at 4,610 and support at 4,530. Momentum indicators do not suggest any substantial weakness at 4,528-4,500 levels, which may act as a support.
The market is expected to remain firm during August with the Nifty expected to cross its pre-Budget high of 4,695 early next week.
Accumulate the stocks which displays good Q1 results.
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