Nifty had a smart rally on friday and lot many short positions got covered above the mentioned levels of 5250 and gave a close above the important psychological level of 5300.As i mentioned one could see good addition of long positions in nifty futures below 5200 but most of the stocks have moved as a result of short covering. In the previous post i had mentioned about making long positions in Canara bank and TATA steel and both gave a combined return of more than 8% on an intraday basis.It still might have some more steam left till 5400 - 5410. Any dips close to 5200-5230 levels can attract more buying as there would be lot of buyers waiting on the sidelines especially in stocks. Cooling off of crude was a big relief for the equity markets and it has made an upper ceiling around 5400 levels.Among the major stocks SBI is still a weaker stock but Axis bank and YES bank could be the next big movers in the banking sector. Lot of stocks are yet to recover from the lows and thus we can expect a range bound market after this rally and if you are a nifty trader exit at the tops. On the downside watch levels of 5200-5230 as lot of fresh buying could happen. Lets keep a range of 5410 - 5230 as the weekly range.
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