Nifty held the previous low zone of 5190 levels and closed at the days high. We have an important event on the 17th of April and RBI policy decisions have always made a great impact on the market.We could see all banks rallying on the upside expecting a cut in key rates. The structure of bank nifty is actually much better than that of nifty for an up move but nifty still has to prove it by crossing 5330 levels. We could see a battle between the short sellers from 5300 levels and buyers from 5200 levels and it would be really interesting to see who would emerge as the winner.As per turn over data it was one of the worst days with lower turnover and FII's were on the sell side. The volume data shows some short covering happening at lower levels but long accumulation is yet to happen in many sectors though banking is an exception. These kind of days would be a little tough for retail traders to play with.If a rate cut is there ,though it has been discounted it would be a positive factor for the market but nifty needs to cross some major levels on the upside for any break out. Thus if there is any positive momentum in the market go with smaller stocks like IRB infra , Andhra bank and UCO bank on the long side as the risk/ reward ratio would be in favor than playing SBI or ICICI bank.If the news is affecting the market in a negative way go for long straddle with at the money options. It is good to see nifty holding some major support zones irrespective of the negative news flow and it needs to continue this for any move on the upside. Thus lets keep 5190 - 5330 as the trading range and break out of the range could most probably be a trend deciding one.
sir,target for irb infra.
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