Nifty is still holding the major support zone of 5090 and trading much
above the mentioned level ahead of expiry. As said in the previous posts if you
are not an options writer it would be quite difficult for a nifty trader to
trade this tight range. Rollover statistics is still in favor of bulls and we
need the confirmation from institutional investors for any up move. On the
other hand a break below 5090 can take nifty to 5000 levels and it can
definitely give a trade too as it is a huge consolidation break out. Though it
is a tight range major stocks are not showing any distribution pattern except
SBI.
Stocks like JSW steel and SESA goa are on the verge of an upside
breakout with decent volume and thus it is fair enough to expect these stocks
to give 5-6% return if nifty breaks on the upside. News flow from Europe would
be a major trigger for markets to set the next move. In the commodities market
copper broke out from a range bound session and it can give some positive momentum
for metal stocks. If we have a look into the chart of Dow jones 12400 would be
a major support zone and a break below this could see a sharp cut of 500-600
points. Volatility data shows some long build up happening at lower levels but
wait for a break out to take any trade in nifty.
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