Mixed cues from the American markets and weak Asian market cues influenced the opening bell for the Indian markets. Thereafter alternate bouts of buying and selling led the Benchmarks to sway violently within a tight range as bargain hunting at lower levels and profit taking at higher levels kept the prices in check. However the bulls gained a decisive victory, towards the end.

While excessive traction was witnessed at the stock levels, on the sectoral front, Metal, Realty and Power sector stocks attracted buying interest whereas FMCG and IT remained under pressure. However shares of Patni Computers surged more than 8 per cent on buzz that L&T Infotech is looking to acquire a stake in the company. Poor credit growth and stricter stance by the RBI continued to weigh on the Banking stocks.

Sectoral churn has once again emerged as those badly battered (Metals and Realty) seem to be evincing greater investor’s interest along with weakness amongst those (FMCG, Healthcare and IT) that had displayed resilience in the recent fall. Watch out for stocks in the Banking space as it seems that it may be their turn to catch up.

Uncertainty and nervousness have made investments a riskier proposition. However, for those with a good risk appetite would do well to cash in on opportunities and trade with strict trailing stop profit strategy incase of trades initiated, either long at lower levels or short at higher levels.

The trend during the week suggests traction near the final trading hour and this could augment on the last trading day of the week. Investors may decide to unwind positions and book profits at higher levels instead of carrying overnight positions over the weekend due to uncertain global market trend, lack of domestic triggers and the v-shaped recovery witnessed in the last two trading sessions.