As mentioned in our previous update, we finally saw built up in stocks of POWER sector paying off, as most of them made a strong comeback. While, BANKEX did remain at forefront of the rally, strong retracement in BSE Capital Goods sector needs to be observed carefully. Another sector, which did catch our eyes yesterday, was BSE Reality that lost almost 1.59%. All the seven top-weighted stock in BSE Reality sector showed declines and closed lower.

What we are currently missing is "volume". Smart investors are not concerned about falling or ranged market but are more concerned about falling volumes. Markets have already started narrowing their trading range. If observed carefully, few weeks back it was levels of 5000-5050 on NIFTY that used to witness strong profit booking, later it was 4880-4900 and now its 4750-4770 range. While on downside levels of 4500, which attracted value buying has now changed it position to 4628-4630 levels. Going deeply in stock specific activity that occurred in past two months, like one in Orchid Chemical, it was only stock changing hands. Occurrence of such events in future especially under lowly traded market can take investors as well as traders by surprise.

All in all, though mid-term trend does remain ranged for market going ahead. If Nifty fails to maintain that levels of 4450 on downside in any case, long-term as well as mid-term outlook will completely turn in favor of BEARS. As for today''s trade we once again see market witnessing ranged activity between 4680 and 4750-4770 levels. Any sustainable move above 4770 levels will be positive for our market and we may probably move to 4830-4850 range. Traders are advised not to keep too many open positions at a time, as volumes in cash segments have just dried off.

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