Nifty futures held the most important levels of 5330-5400 levels once more but could not give a convincing move on the upside. I have been mentioning about three stocks in the previous posts ,they are ICICI bank, Jindal steel and SBI. These 3 stocks did not recover from their daily lows and ended on a negative note. If the most positively correlated stocks are not giving a reversal it would be a wait and watch signal for traders on the long side. The advance/decline ratio was in favor of declining counters but volume data is not confirming a heavy selling.Volatility index is showing some fresh short positions around 5440-5450 counter and thus says nifty would need a minimum of 2-3 days for any good up move as these shorts are placed on a larger zone of 5440-5450 and around 5520-5550 zones.Some of the important stocks like ICICI and L&T are trading below the support zones and this would be a major worry for markets in the coming days. Institutional traders have just started their selling and if it breaks 5330-5340 zone on the downside Nifty could show further weakness towards 5240 levels.Thus if any one wants to be a buyer wait for a better consolidation phase as all the major moves have been emerged from tight range bound markets.On the upside 5440-5450 would remain as a major hurdle and it would be a good sign for the bulls if it could surpass these levels with good volume.Watch these leading stocks like Jindal and Icici bank as the leading indicators of nifty and then get into a trade.As per the time cycle i had already mentioned two important dates, they are March 20-21 and dates from April 2-10.If there is further upside in terms of a major rally it could happen from April 2-10 and March 20-21 could be trend deciding days.An upside for the dollar is quite possible because of the time it took for forming a bottom. Thus lets keep a range of 5330-5440 and a decent break out on the downside for a trade and the upside break out for just a confirmation of a bottom and not for a trade.
