Nifty made a decent come back from the the lows below 5200 level and we could see the extension of the pull back rally. It would only help the stocks to come back to the previous highs that would act as a stiff resistance zone. The volatility index is showing some addition of long positions at 5170-5180 levels close to 20 days moving average which could act as an immediate support zone. Thus if the extensions could allow nifty to close above 5300 levels that could be a good sign for bulls (a weekly close).If we have a look into the stocks we could see lot of stocks waiting for a dead cat bounce like Jindal steel and Wipro. If we have a gap up close to the end of a rally that would usually be treated as an exhaustion gap were we would not buy that gap. I am not very bullish on nifty for two reasons 1. The volatility index is trading at years low and give it some time to get adjusted. 2. The premium is getting heavy as we could see only buyers and usually a market tops out at these kind of situations.The trading range can be 5190 - 5310 and use the break of upper levels for exiting long positions .
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