We could see Nifty sliding below 5500 and though it attempted a comeback to 5560 zone it could not sustain above the mentioned resistance levels and thus closed below the support levels.Volume data does not suggest any reversal pattern or accumulation on the downside but as the volatility index too closed on a negative it should be considered as a profit booking session. Thus tomorrow can be a crucial day to show whether nifty has the strength to break out on the upside or downside.Below today's low we could expect some more selling pressure and that could take nifty to 5350 levels. On the upside we should consider 5560 zone to be broken for any upside momentum. As i said in the previous posts it does not make sense to hold on to long positions. SBI could play a major role in this trend deciding move of nifty and we need to see whether the banking biggie is able to hold on to 2200-2250 zone.As we could not see any major short positions or long positions in 5500-5560 zone it could be read as long unwinding in feb contracts and no major rollovers are happening in this zone. Thus the breakout of the range would be valid and it could give a trade of 80-100 points. Thus trade with near out of money options of April and we could get a higher delta to trade in a better way. The range can be 5440-5560.
