Nifty held the support zone of 5250 and is expected to trade till 5360-5380 in the short term.We could see a positive momentum in the stocks and bank nifty too held the crucial trend line support.On a bounce back the beaten down banking names will have a sharp recovery and some buying could happen in real estate names too. Among the banking names we could see SBI not joining the downfall in the previous week and that could be a stock to bet on as new buyers would be there rather than mere short covering. Volatility data is showing still some shorts are left close to 5300 zone and a good rally would cover all these positions in favor of bulls. Another stock that can rise in the near term would be L&T as the stock is near the support zone. The overall turnover data was poor but is expected to rise once the confidence is back in the system. If we see the US market charts we could see S&P holding to the mentioned support zone of 1395-1400 zone and that would be good sign for the bulls. The strategy would be to go long with the near out of the money calls in names like L&T,ICICI bank and SBI as it is worth taking a small risk at this juncture. The trading range can be 5250-5380.
Stock to watch.
LIC housing - The stock is close to the strong support zone of 230-235 zone and it is expected to trade till 255-260 zone in the near term. I would like to go long in the counter with a stop below 230.
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