Nifty held the support zone and inching towards the immediate target zone of 5850 but as said in the earlier posts it is time for unwinding some long positions in the banking sector. As a trader one should be good at reshuffling the portfolio according to the situation. Midcap IT space looks attractive with Mphasis as the top pick in the sector.CNX IT and Pharma are two spaces where we could see renewed buying interest and incase of any profit booking traders would jump into these sectors to make some quick money. Volatility index was showing addition of some long positions during the end of the session but if we have a look into the turnover data we could not see much buying interest at higher levels. As an investor instead of buying at a higher price it is better to hold on to the previous long positions especially in the midcap IT space. Dollar/INR is moving to the support zone of 52 range and a short term bounce is possible at any point of time and it looks quite cheap after a fall from 57 range. Thus as a trader it is time to be a little cautious on buying positions especially in those stocks which are positively correlated with nifty. The broader range could be 5710-5850.
Stocks to watch
Mphasis and Escorts - Both these stocks have given a break out after a long consolidation of 2-3 months and i guess buyers have got enough time to accumulate these stocks. As an investor i would be getting in for a 10 % return at current levels and keep a stop of 395 and 62 respectively.
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