Nifty futures held 5970 zone and it is expected to see some profit booking in the coming days. We could see a negative close for volatility index and the premium still remained 35-40 points, thus it could be read only as a profit booking session. Usually when nifty is close to a resistance zone as per the derivatives data and the premium is close to 35 points one needs to be cautious.If we see the chart of bank nifty it has already reached the trend line resistance before nifty.Thus it can lead to a correction in the near term as we first track the respective index before going stock specific. At 5950-6000 it can act as a psychological level than a technical level and it is wise to take some cash from the market and wait for a good opportunity to get in. If we check the past data December has always been good for equity markets and we could see allocation of money from precious metals to stocks , that is seen as a good sign for the markets going forward. It is wise to book some long positions in banking stocks an we could wait for a better levels in banking space to re enter. The status is still 'buy on dips' and 5750 -5800 could act as a decent support zone. I would be a buyer in 6000 call feb options if there is any dip and that would be a much cheaper one than going for futures.Two stocks i would remain bullish would be TATA motors and Allahabad bank and one could use any dip to create long positions in these stocks. Among the metal stocks JSW steel is on the verge of a break out above the previous high of 780 zone and TATA steel would be a decent bet close to 380-385 levels. The strategy would be to wait for a correction to create fresh positions and the target of 6150 is still intact as the structure still looks strong
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