Nifty made a pause at the immediate support zone of 5330-5300 levels and it might be preparing for a small bounce ahead of expiry. The picture looks dirty and it is expected to correct till 5220-5240 after a small bounce. Bank nifty looks vulnerable and is trading close to the immediate support zones.Though some exceptions like Dr Reddy's and Siemens are making bullish patterns the overall structure of the market seems to have broken down. As nifty has reached the first target zone it is time for not to be short in the market and wait for a bounce close to 5400 levels to be short in the market again.If we see the market structure we could see Bank nifty is on the verge of a break down in the daily chart and Axis bank is one stock that is a clear 'avoid' rating among the group after a sharp bounce stock is expected to trade till 940-950 zone in the month of September. It would be encouraging for bulls that a tleast some pharma stocks are giving a buying opportunity but if the market is weak one should not look for buying opportunities and use the bounce backs to exit your long positions in weaker counters like banking and metals. If we look at the US markets one should closely observe 1395-1400 in S&P and a slip that would lead to a 5 wave decline and could have a negative impact in nifty too. Dollar/ INR is expected to trade till 57 zone with a reversal below 54.80 and any dip could be considered as a buying opportunity as long as the mentioned support zone holds. The trading range can be 5290 - 5380.
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