Nifty held the previous low zone of 5230 and gave a negative weekly close. It is looking like a dull market ahead of the earning season and is expected to be in the tight trading range of 5200-5400 till expiry. If we have a look into the weekly charts 5400 looks like a major hurdle to cross but on the downside we have decent support zones close to 5180-5200. This situation calls for a range bound market as stocks are not
forming any kind of distribution pattern. The only way to trade a range bound market would be to buy near the support zones and sell close to resistance zones. The volatility and turnover data are in favor of bulls as we could see a negative close for the volatility index and the volume was very less indicating short covering happening at lower levels. The premium in nifty has not come down and it shows some buying is happening close to 5200 zone.I expect the range to continue in the coming days too with a buy on dips strategy. Stocks like Bata india and Bf utilities are expected to trade with a positive bias if the market rises close to 5300 levels.
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