Nifty is still not able to break the range and closed at the lower end
of the range. As mentioned in the previous posts 5080-5090 is a major support
zone where lot of buying has happened and a breakdown below this could be a
short term trend reversal but use the deeper cuts to enter the market. The
medium term bullish trend is still intact with a target of 5300 as long as the
multiple support zones of 4950-5000 holds. Thus if it breaks down one will get
an intraday trading opportunity on the short side and wait for a proper time to
enter the market. On the upper end 5200 still remains as a major resistance
zone and lot of call writing is happening at that zone. As the upper bands got
tested on the first week of the expiry day it would be tough for nifty to cross
5200 on the upside before the expiry.
Volatility data shows some short positions are getting accumulated on
the upside but we could not see any huge selling pressure in the equity
segment. As of now SBI is one large cap stock that is showing good positive
correlation with nifty and trade the stock when gives a break out. Let’s keep a
range of 5080-5200 and consider the break of the lower band as a break down
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