Nifty update for 29-June-2012

It was a quiet expiry without much noise but and as expected it closed below 5200 mark. It has been a testing time for nifty traders for quite a long time and it is expected to break the range after some major events in the coming week. We could see some stocks breaking down the range like SBI, Axis bank and some were giving whipsaws on the upside. These break outs might have happened due to the expiry as the current month contracts got squared off. On the way ahead as long as 5090 levels are holding the bias is towards the upside but without bank nifty it could be difficult for nifty to sustain at higher levels. It is surprising that nifty could not get fully utilize the benefit of falling crude because of rising dollar. Towards the end of the day we could see some huge build up in 5000 put July and 5300 calls too. Thus as of now traders are considering 5000 as a decent base in the short term and betting on higher levels. If we see the individual stocks as said in the previous posts in the large cap front only SBI and TATA motors are looking weak but rest of them are holding their support levels and bounce could be expected at any sharp cut in nifty. The support zones of 5080-90 would be the key if you are on the long side and 5300 would be the upside cap. The trading range can be 5080-5200.