Nifty gave one more range bound session but the turnover data and the market breadth is showing some positive momentum is still left in the system. These profit taking sessions are good for a market to build its base so that it could continue the up move till 5400+ levels. One important positive development that happened today would be the fall of dollar/ inr and it gave a break down below the support zones and it could take to 53 levels in the short term. The volatility index is close to the bottom and we could see the options premiums are getting cheaper and the scenario looks like a partial profit taking at 5350 levels and 5400+ levels would be the levels to completely exit the trading longs.Crude oil is again back in action with the positive momentum and thus as said in the previous posts this is not a time to take a fresh long position in nifty but to hold onto to your positions.Stocks are giving interesting moves on the upside and the market breadth is also in favor of a positive momentum. The trading range can be 5260 - 5360 and use the upper levels to book some profit and the upside moves will be extensions as we could see lot of options writing happening in 5400 calls.
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