Nifty made a new below 5300 but was well within our range of 5290-5380 and expected to trade till 5220 with a bounce to 5350-5360 levels. It would be important to watch U S market at this crucial level as the news flow would be coming from there too and i wold be closely watching 1395-1400 levels in S&P as it is the crucial level to watch for. Volatility index is showing some short accumulation at higher levels and turnover data is showing portfolio unwinding in many stocks. As said in the previous posts wait for a decent pull back to go short in nifty and let the bounce complete the short covering activity and let the trend unfold.Though we could not see much short covering activity the risk reward ratio is not in favor of short positions once the stocks have already broken down from the highs. A break below the current level with a bounce would complete the short term 5 wave decline and we should recheck then whether the medium term outlook is also turning negative or not. The trading range can be 5270-5350
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