It held our upper range of 5625 and came all the way down to 5500 which is a major support zone.One could easily square off the long positions at 5560 levels and go short from those levels. It could be seen only as a normal correction . Volume and turn over data shows still lot of buying is happening on dips and today's selling was mainly due to profit booking.On the 21st of Feb we could see an unusual increase in volatility index and thus we could assume that we have short positions lying only in 5600-5630 zone and all the rest of the selling happened due to profit booking.Though it was a little painful for the mid cap and the banking space it should be treated as a normal correction. Thus if you have any puts bought below 5560 take a chance and hold it if nifty futures crosses 5500. This is only the second phase of the current rally and we still need a secondary rally to confirm the top. The immediate support zone lies at 5440 and we could consider 5330-5350 as the base for the current rally and trade accordingly.Lot of liquidity is yet to be pumped in to the system by retailers who did not get much opportunity in the current rally.We could book some profit in SBI above 2400 and that too on time and the stock was the only one which showed some trend reversal.On e the upside keep an eye on 5600-5630 zone is getting covered . Lets keep a range of 5440-5560.
