Nifty gave a dip close to 5000
and held the support zones to give a smart rally above 5100. It gave a decent
close and that could take nifty to new highs. It is still in a tight range as it has to go through some serious consolidation stages. If
we have a look into the chart it is clearly stating a trend line break out on
the upside. The support zones below 5000 are holding well and it would be wise
to take a long trade as long as the support zones are held. It is good to see nifty
futures trading in premium and the volume is expected to be better after the RBI
policy as it has an upper hand in deciding the short term trend. Turnover data
does not show much participation from the institutional traders and it is
important for nifty to get the help of bigger funds for a sustained up move. Volatility data is showing
some log build up happening at lower levels and 5020-5030 would be a crucial in
the days to come as traders are showing some buying interest close to that
zone. If we have a look into the stocks, cement sector has started showing some
momentum on the upside and Ultra tech would be the favorite among all as it is
a late mover. The stock is getting consolidated close to 1380-1400 for quite a
long time and expected to break on the upside as the accumulation pattern is
good. The volume is comparatively low but a smart trader could get it by
keeping a closing stop below 1380 for a 100 points move
in equity.
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