Market is likely to remain choppy tomorrow.

Alex Mathew, head research centre -Geojit Financial Services said, ``Today we had seen a subdued market turning into a bull lead market on the back of huge short covering by FII`s and hedgers with defensive sectors like Pharma and FMCG stocks along with the beaten down sectors like banking and realty sector stocks leading the rally. IT stocks were down because of decline in frontline IT ADR price while profit booking was seen in capital goods stocks.

In the morning session markets remained subdued as the uncertainty in the political front was prevailing. The investors were covering their short positions on Nifty on rumors that UPA government may win the vote of confidence as they expect an unexpected addition to fill their quorum. If the UPA government wins the vote of confidence, we may see some reforms being implemented prior to the elections which were on hold since the UPA government came to power.

Nifty has immediate support at 4,125, 4,115 while resistance is there at 4,225, if breaks this level then we may see huge short covering which may take Nifty towards 4500 levels. The best strategy to adopt at these levels will be buy two lots of Nifty at the money call options and hold one lot of Nifty put options.``

P. K. Agarwal, president, research, Bonanza Portfolio, said ``Indian markets saw buying interest continuing last week`s strong close. As the UPA`s Vote of confidence debate began in parliament, some weakness was seen in the markets.

Nifty went to low of 4072. But during the last hour of trade buying returned, short covering took the markets further up. Nifty touched a high of 4168 and closed near the high at 4159. Nalco, Hero Honda, Cipla, Maruti and Banking sector were up.

Whereas, Satyam, BPCL, Ambuja Cement, HCL tech and IT sector were under pressure.

Market is likely to remain choppy tomorrow as voting on trust vote is to take place.A sharp rally can emerge if Govt. wins the trust vote. On upside 4200/4220 can be resistance levels. On downside 4060 can provide support.

Investors may start buying in small quantity in case UPA govt. survives.``

Source: - MyIris