Nifty is in its final leg of up move by getting decent support in the mentioned support zone of 5260-70 levels. It can trade higher till 5400+ levels but these are levels to exit the long positions and wait for the clear trend to emerge. We have some important Fibonacci numbers placed above 5400 zone and thus these are levels to look for creating short positions than longs. On the downside 5260-5270 is the zone where lot of buying has happened in the previous week and during the past 2 days too. Thus holding these levels would be very important for a short term trader and a dip below this could be seen as a short term reversal. Any gap up openings in the coming sessions would be seen only as 'exhaustion gaps' and these would occur only at the end of a short term rally. Volatility index is telling as lot of buying is happening close to the support zone but the turnover is decreasing. If we consider the world markets like Dow and S&P they are close to their support zones. S&P is just holding a channel support line and dow has to go below 12400 for any downside risk. Dollar index is on its way up above 83 zone and this could trigger a rally in Dollar/ Inr too .
The trading range can be 5260-5400
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