Yesterday Reliance Ind announced bonus 1:1. As expected Ril Ind stock opened up strong with a gain of nearly 3.50 - 4%. Sensex opened up strong nearly 170 points positive. Nifty opened above 5000 levels. Buying in the FMCG, OIL & banking supported the mkts, but the telecom sector continued to face the heat. Bharti Airtel tumbled 6.6%. Rcom slipped nearly 6%. Depreciation in the value of Dollar as compared to Indian Rupee continued. Rupee opened strong at 46.36 levels. Technology continued to be week for another day ahead of the Infosys Q2 numbers and the weakness in the dollar.

Markets remained choppy and volatile for most of the day after opening up strong in the green. Sensex at time was trading higher nearly 180 points, but slipped down in the late hours and closed marginally up by 37 points. Nifty closed at 5002.25 up by 16 points. As mentioned in my last blog that the markets are finding it difficult to sustain at the higher levels. Nifty attracts some selling pressure or profit booking above 5000 levels. RSI is also trending down. But either movement will be too fast as the signal given MACD is still not clear. Volumes have been pretty good in the current week. Yesterday the markets corrected. Nifty took support at the trendline at 4986 levels. Nifty took support at the red trendline.