On the day of the weekly expiration of index options, the benchmark index witnessed profit booking. Post muted opening, the market registered selling pressure. The Nifty/Sensex opened at 15,238.70/ 51,903.86 and due to constant selling pressure, erased over 100/400 points.
Among sectors, financial services, auto and private banks witnessed selling pressure, while the Nifty PSU Banks gained the most, rallying over 5.50 per cent. We are of the view that the market is likely to continue the narrow range activity and PSU Banks and selective midcap and smallcap stocks will outperform in the near future.
Technical
On the daily charts index, higher bottom series formation and the texture of the market suggests uptrend is likely to continue if Nifty succeeds to trade above 15,050. Above the same, we can expect one more leg of the up move, up to 15,250, 15,330.