He feels that, The markets trading in a 4,100-4,600 range in the July series. “The market will remain in a range with the lower level being around levels when the market opened when the results were known of the general election. This was around 4,100 for the Nifty and about 14,000 for the Sensex. That remains the bottom. The recent highs that we saw of about 4,600 for the Nifty and about 15,300 for the Sensex should be the top end of the range. We will have this trading band maybe for another fortnight or three weeks.”

He feels July being a month of heavy newsflow could make a big difference to this trading band. “It could get scale upwards and be broken down as well depending upon the newsflow.”

According to Mehta, there is higher probability of the market piercing the resistance levels is more than piercing the support levels. “Next month, earnings for Q1 FY10 will also trickle in which should be extremely important as it will be the first full quarter after India has come out of a recession or depression. So, accommodation of Budget, monsoon, and earnings would mean heavy news flow and that could tilt the market either ways. Given the kind of signals which we are getting at this point of time, the July series would turn out to be a good series. You could see another new high for both the Sensex and the Nifty.”

source: MC