Markets remain volatile in a narrow range

Key share indices continue to remain volatile in a narrow range, oscillating between negative and positive terrain.

By 11:25, the 30-share Sensex was down 38 points at 20,209 and the 50-share Nifty was down 14 points at 6,157.

On the global front, Japan's benchmark Nikkei share average eased 0.2%, after opening down 0.7% as Japanese shares ran into some profit-taking after their recent rally. MSCI's broadest index of Asia-Pacific shares outside Japan was little changed at 480.79.

Markets in Hong Kong and South Korea are closed on Friday for holidays.

Back home, the rupee today lost 21 paise to 54.98 against the dollar in early trade on the Interbank Foreign Exchange due to appreciation of the US currency against euro overseas.

According to Chetan Jain, Dy Manager (Derivatives Desk) at Anand Rathi, “Nifty had made recently the 28 month high on 15th of May and now sustaining at higher levels, generally whenever any stock or index gives such good breakouts the probability of moving higher are very high and we are also mildly bullish on markets.

To play on safer note at this current juncture we are advising our clients Option strategy named as Bull Call Spread: Buy 6200 Call@60 and Sell 6300 call@25 ; Max Risk: 35 Max Reward: 65 ; BEP 6235 (Traders can keep Stop of 15 points in premiums and upside targets of 60 on premiums)”

On the sectoral front, BSE Realty and Power indices have gained by 1% each. However, BSE Consumer Durable index has declined by nearly 1%.

The main gainers on the Sensex at this hour include Jindal Steel, Bajaj Auto, NTPC, ICICI Bank, TCS, Cipla, ONGC, Tata Steel and Infosys, all gaining between 0.5-1.3%.

On the losing side, Dr Reddy’s Lab, HDFC Bank, Bharti Airtel, HDFC, Wipro, RIL and Sterlite have fallen between 1-2%.

Among other shares, Escorts is trading higher by 4% to Rs 64.80 on reporting 62% year-on-year (yoy) jump in net profit at Rs 37.47 crore for the second quarter ended March 31, 2013 (Q2) due to lower raw material cost and interest cost.

TTK Prestige has rallied 6% to Rs 3,659, extending its previous day’s 2% gain, after reporting 42% year-on-year (yoy) jump in net profit at Rs 28 crore for the fourth quarter ended March 31, 2013 on the back of higher operational income.

Aarti Drugs is locked in upper circuit of 10% at Rs 210 on NSE after reporting a robust 86% year-on-year (y-o-y) jump in net profit at Rs 13.81 crore for the fourth quarter ended March 31, 2013.

Meanwhile, BSE Midcap index is up by 28% whereas BSE Smallcap index has gained 0.23%.

The market breadth in BSE remains marginally positive with 1,038 shares advancing and 953 shares declining.