Mkt sees tight range, June expiry around 5100-5200 levels

European markets are actually quite weak as we head into the European summit today. On the first day, the DAX is down 1.5%, other European markets are not looking comfortable at all and even the DOW future has been quite weak. So markets are preparing for a lackluster euro summit and that has brought some pressure on Indian markets as well. But we are holding around 5140. Hence, there is no panic as we head into the last hour of expiry, Mukherjee explained.

The day saw quite a tight range and Mukherjee feels that the markets would not be allowed to fall too much today because people had assumed as a forgone conclusion that the expiry will be somewhere around 5150. Today, even if European markets correct more in the next one hour, our market will be relatively resilient.
 
The expiry is in the next 20-30 points this way or that. It is very much within that channel of 5100-5200 that the markets have been circling in. But today's European weakness raises questions on an eventual breakout, past the 5200 mark which people were expecting, either starting tomorrow or next week.

If global markets continue to shape up that way, then we are likely to stay in this range for a bit longer and don’t breakout. Even if we do, we don’t go to anywhere special. It may just make a marginal breakout to 5250-5300 kind of levels. So the global situation has to be watched not for the last 1 hour of trade today, but what happens in the next 5-7 sessions.