Nifty update for 13 - April - 2012

As said in the previous post nifty futures held the trading range of 5190 – 5330 and got resisted at upper levels.

Though bank nifty was very much supportive for an upside move nifty could not utilize the momentum to take it above 5300.In the commodities market crude oil is again on its way upto 5400 levels and it can adversely affect the upside momentum in nifty. Volatility data is showing some short covering and long accumulation happening at lower levels but traders are suspicious about the up move and lack of volume could result in a range bound market with a negative bias.Thus it is a market to cover your short positions at lower levels and wait for better opportunities. On the upside 5330 is a key resistance area and an upmove above this can take nifty futures to 5400 zone.Short covering rally in copper could help the equity market for short term gains.Thus as a trader going long in nifty futures is advised only above 5330 levels. In a shorter time frame the downside risks are still intact and traders are advised to trade with strict stop losses. If it is a huge gap up opening above 5330 i would like to get into some stocks which gives me better trades.All the shares mentioned in yesterdays post have given decent up move in todays trade. Lets keep a range of 5190 - 5330 and consider a break above 5330 as a break on the upside 

        Stocks with positive bias (only above previous days high)

        SBI, Axis bank, Auro pharma, Canara bank, UCO bank, Rolta

        Stocks with negative bias (only below previous day’s low)

        Polaris, Union bank, Reliance capital