Nifty held the mentioned support zone of 5250 and it is expected to spend some more time in a narrow range of 5250-5330. The short term bias can be positive as it is holding the previous low zone and large cap stocks like l&t and SBI are leading from the front. Volatility data is showing some long build up in the range of 5260-80 zone and this level should be the stop for any long positions. A break above 5330 could lead to higher levels in nifty. In the stocks front Reliance and SBI are looking good on the long side as they are getting good buying support. Turnover data was still poor and it shows the current rally can be due to short covering and buying has happened only in few counters.If nifty is ready to move up real estate sector stocks like DLF and HDIL are expected to move up but would like to remain bearish on banking except SBI. We could see an interim base close to 5250 and bears will gain strength only once that level is broken on the downside. Though we could talk about the price action could get weaken by breaking the low there would be multiple support zones lying close to 5200 zone. Options data is telling us lot of options writers are still active in 5200 puts.The long build up in nifty futures is visible by analysing the open interest and volatility data but the reading says institutions would take some more time to make fresh long positions in stocks. The trading range can be 5250-5330 with a break out above the upper band.
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