The markets are in such a comatose state that nothing seems to be able to shake it out of its complacent state. There was an initial hiccup in the morning when the sensex opened at 3282. But the index recovered soon after and closed the day just 12.45 points lower from its previous close. The nifty was just as composed and closed 3.20 points lower. Volumes continued to be thin amidst almost neutral breadth.

If we consider the downward move from the top of 3759 (30-05-01) in the sensex and 1217 in the nifty, one downward moving wave was completed at 3288. Then there was a rally to 3514, which was 48% retracement of this downward move. It is quite possible that the correction of the downward move from 3759 is not yet complete. Another rise to 3468 or 3547 levels will give credence to this possibility.

The short-term trend continues to be neutral. We have a protracted sideways movement since the last two weeks. Since this comes after a brief upward move from the low of 3241, at least one more upward move can be expected from here. But a fall below 3240 will once again open the Pandora's box.

Things continue to remain unchanged. We are still waiting for a breakout out of the 3270 - 3350 range for a clear direction. The range in nifty falls between 1060 and 1085. Till then traders can take a much needed break.

TODAY'S TRADING DAY

Another weak start on Thursday morning can see the sensex retreating to 3292, 3271 and then 3236. The 3270 level can be stop loss level for long positions. Targets beyond 3236 fall at 3180.

Resistance for the day falls at 3323, 3349 and then 3374.

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