Nifty ends volatile session flat; IT dips, banks, power up

The markets witnessed consolidation today as traders looked cautious after seeing 3.5% rally in the last two days. The benchmark indices ended flat but remained weak for the major part of the session due to sell-off in technology, telecom (barring Idea), FMCG, pharma and oil marketing companies' shares. However, buying was seen in banking, power and steel stocks.

The equity benchmarks started on a positive note and remained higher for the first half an hour of trade following positive Asian and US cues. The Dow Jones closed above the 10,000 mark for the first time since October 2008 on Wednesday. European markets and the US index futures were flat in trade, at the time of writing this report. Asian markets also came off from their highs at the end of trade. Nikkei was up 1.77% while Shanghai, Hang Seng, Straits Times, Kospi, Taiwan Weighted and Jakarta were up just 0.14-0.6%.

Ambareesh Baliga of Karvy Stock Broking said the markets should move up more from here. "The markets are going possibly we could see 5,200-5,300 very soon."

Rajat Bose of rajatkbose.com also said the momentum was likely to continue. "The Nifty might actually scale up to 5,150 to about 5,180 before it attracts any major resistance and above that 5,207 to about 5,232 would be another major resistance area. But overall unless and until we fall below 5,050, I don't think this momentum is likely to go."

The 50-share NSE Nifty shut shop at 5108.85, down just 0.18% or 9.35 points, after seeing an intraday range of 5077.10-5152.25. The 30-share BSE Sensex was down just 35.91 points or 0.21%, to settle at 17,195.20. The broader indices outperformed the benchmark indices; the BSE Midcap Index was up 0.55% and Smallcap up 0.87%.

Global cues:
Asian markets came off from day's high. Nikkei rose 1.8% and Hang Seng up 1%. Shanghai, Jakarta, Straits Times, Kospi and Taiwan Weighted gained 0.3-0.6%.