Nifty is still spending its time in a tight range and it would be one of the most boring market conditions in the past few years. The poor turnover data is showing the lack of interest by retail traders and and institutional traders are ruling the market with their heavy participation. It is expected to take support close to 5320-5330 zone and head towards 5420-5450 zone in the current series. The upside could be capped due to lack of participation. As said in the previous posts S&P would face a stiff resistance close to 1450 and nifty would not be able to do any magic if world markets start falling.Volatility data is showing building up of short positions at the upper end and 5300-5400 could hold for this week too. Though the index is providing trading opportunities only for option writers PSU banks are at attractive levels to get in. Stocks like Canara bank and Bank of baroda are on the verge of a break out. I would be a buyer in these two stocks above the previous highs as it is a break out trade. The trading range can be 5300-5410.
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