In tune with global cues, the Indian markets traded on a flat note with a negative bias. With bouts of volatility, the selling pressure in the second half caused the markets to slide down further and took it below the key technical and psychological  levels (on the Nifty) and it ended the day well below these important levels.

While Auto and Banking stocks were witness to a mixed trend, IT stocks surged following the announcement of better than expected US Job data. However it was the Metals and PSU Indices that dragged down the overall markets. The weakness in the Oil & Gas and Realty stocks also favored the bears.

Tata Motors lost ground and also was the top loser from the Sensex pack amidst reports that German automaker Daimler sold its entire stake of 5.34 per cent in the company.

As expected, the share price of NMDC took a beating following the  announcement of its FPO price band which is almost 25 per cent lower than its closing price yesterday.

Whereas Tata Motors fell by 3.2 per cent, NMDC dipped by almost double of that (6.2 per cent) during intraday trade. While the stock price of the former may recover immediately, investors looking for exposure through secondary market in the latter would do well to wait for price discovery post its FPO.

For now, the opening trend would depend on the global cues which seem to lack direction at this point in time. On the domestic front IIP numbers by the end of the week is the only likely trigger. While the markets may consolidate post the budget announcement, there are clearly no visible triggers for the same. However as the underlying sentiment remains bullish, a sharp decline could be used as an opportunity to initiate long positions.

Technically, the Nifty has a strong support near 5060-5070 levels, a breakout above which triggered a run-up till 5150 levels from where it has started to cool off.

Traders can consider going long with a strict stop loss at this intermediate support levels. For investors, a wait & watch approach for an emergence of decisive trend seems to be the optimal strategy for now.