Nifty could not breach the resistance levels on the upside and trading below some important support zones. Bank nifty did the damage but we need more confirmation for a downside. We had some important support zone around 5440 but nifty could not stay within the support zone broke that zone without much difficulty. The next level on the downside that has to be watched would be 5330-5320 levels where lot of buying has happened during the past week. On the upside we should go for a buy only if nifty futures crosses 5540-5550 levels on the upside and till then we should wait for more confirmation for an accumulation pattern and till then we should wait for a support level to be formed.Dollar is still trading strong with an upside momentum which says that upside target of 52 is not far. If we see the volatility and turnover data it is evident that some short positions are being built up on the upside but we need to see whether it would get covered on the upside or would add more below today's low. Nifty futures held our lower range of 5390 on the downside but ahead of the major event one should not get trapped by buying the highs. In the commodities market copper is at a major trend deciding level around 432 -434 levels. It would be a bullish sign for copper for on the upside if it crosses the mentioned levels but as of now it is a wait and watch signal. In a nut shell Nifty can only be bought at a support level at lower levels or above the previous high of 5540. I would not be surprised if we could see 5330 and 5200 below today's low but just consider as bull market correction and it would be good to build up a healthy market with an upside momentum. Thus as of now i'm staying away from the long side and keep a range of 5390 - 5510 and consider the break of 5390 as trade on the short side from an intra day perspective as one could expect huge swings in the market.
