Volatility may continue

F&O OUTLOOK

O IPrice Tata Power18.41-12.69 Reliance Ind9.741.62 HCL Techno8.742.47 Omaxe7.19-6.81 Havells India5.821.28 Bank of India5.19-6.25 Maruti Udyog5.00-1.10 Alok Inds4.86-6.81  Reliance Industries is expected to post a strong Q2 performance, with quarterly net profit of around Rs 3100-3150 crore.  According to Religare research, the bull operators bought Reliance, BHEL and Larsen & Toubro in panic declines. The markets hit the lower circuit (10 per cent) in opening trade, which is only the third time ever in history.  SEBI's decision on P-notes triggered the fall, but the subsequent clarification was welcomed by the bulls. The IT sector stood out, while Reliance Industries and State Bank led the comeback.  The capital goods, power and energy scrips accelerated the pullback, which saw the Nifty recovering over 400 points and BSE Sensex around 1350 points from the day's low. The advance decline ratio was negative at 1:3 and the volumes were slightly lower than the previous session.  The markets have held on to the last week's low at 5000.95. The trend remains up and can test the resistance area at 5724. The Nifty retraced almost 50 per cent (5095) of the rise from 4482-5708 points.  The immediate intraday support on the Nifty is 5480-5490, while it has to sustain above 5623 points for continuation of the upmove. The resistance is pegged at 5654 and 5715-5735.  The bears need to push the Nifty decisively below 5449 points to gain an upper hand. One should protect positions as markets are expected to remain volatile.