The markets ended the week with marginal gains but managed to stay above the 16,700/4,950 levels. Buying was seen in realty, auto, telecom, oil marketing, cement and oil & gas shares. The BSE Sensex closed at 16,741 up 30 points after trading in the range of 16,765 - 16,610 and the Nifty gained 10 points at 4,976. Among the broader indices - the BSE Midcap Index was up 0.45% and Smallcap Index up 0.77%. The market breadth was mixed and the Sept nifty future ended with 6 point premium.

For this week, the Sensex is up 3 % and the Nifty has gained 2.8 %. And Sectorally the BSE auto index has shot up 9 % and the BSE metal index also advanced 7.7 %.

It is a strong weekly closing for the markets as the benchmark indices ended UP almost 3% above the previous week closing. The structure continues to be positive as there is huge buying interest coming at higher levels and we don't see any sign of topping out yet.

The coming week is the Sept expiry week and the market trend will be on the positive bias depending upon how the global markets perform. The trading range could be
4,750-5,100 and strong support at 4,940, if nifty trades below 4,940 then expect weakness entering into the system.

Sectorally cement, capital goods, textile, shipping and telecom stocks have remained an underperformer and going forward we could see buying interest continuing in these sectors. Our sense is that around 5060-5110/17000-
17150 market participant should liquidate and wait for the correction to re-enter.

The daily oscillator RSI is at 71 indicating an overbought sign and a correction is due from this region. In the short run
4,940 will act as a support for intraday if this breaks then 4,890 or 4,840. So be cautious while making fresh commitments at higher level and play safe keeping a strict stop-loss.

STOCK IDEA:

1) DLF (429) - Buy with a stop-loss of 415, if maintains above 440 then look for a big breakout and target looks
465-475 shortly.
2) GESHIPP (285) - Buy and hold with a stop-loss of 270, short term target looks 320.
3) IRB (216) - Buy and hold with a stop-loss of 207, if maintains above 218 then look for 235.
4) PUNJ LLOYD (273) - Stock can be bought with a stop-loss of 267 for a target of 290.
5) TATASTEEL (518) - Buy and hold with a stop-loss of 508, the stock has the ability to test 545-565 shortly.