Nifty held the support zone of 5330 and is expected to move towards the first target zone of 5420-5450 in the short term. The turnover data is not very much in favor of any big movement but when the system is ruled by liquidity we just need to follow the momentum until the trend is reversed. Volatility and open interest data is showing some long build up at lower levels and it could possibly break the 5450 mark too in the September series. The momentum is gaining strength as the PSU banks are also joining the up move.The segment was a real under performer till now and it is surprising to see SBI at 1850 levels when nifty is trading at 5400. The mid cap PSU banking space like BOB and Canara bank are expected to outperform the index in the near term. We were mentioning about a possible break out of SIEMENS in the previous week post and that has happened yesterday with good volume and open interest. Thus if we look at the whole structure in the short term nifty is moving with higher top higher bottom formation which is a good signal and the advance/decline ratio is also in favor of the bulls. 5330 -5320 would be a key support zone or the stop for all the long positions.
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