Markets End on a Positive Note

The markets ended a choppy session of trade on a firm note led by short covering in the last leg of trade as traders rolled over positions from June to July series. The Nifty index opened in green at 5,615 level following firm global cues after Greece government approved the austerity plan. The index moved sideways and touched a low of 5,607 in the afternoon session as trader’s assessed if the gains were sustainable. However, the index crossed the medium term resistance of 5,640 in the last half an hour of trade and touched a high of 5,667. Finally, the S&P CNX Nifty ended at 5,647 up 47 points and the Sensex closed at 18,845, up 152 points. Food inflation eased to 7.8% for the week ended June 18 from 9.1% in the previous week as costs of potatoes and fruits declined. If inflation continues to ease RBI may soften its policy tightening after raising interest rates ten times since March last year. Market breadth is positive with 1507 advances against 1337 in declines.