Nifty had a range bound session with a positive bias. The equity market turnover shows some profit booking at higher levels but every dip was being bought during the entire session. A negative close of volatility index and the open interest data shows some long accumulation is happening at nifty futures at 5300 levels too. On the upside 5400-5410 can be used to exit the long positions. It does not mean that nifty would come down after that but as we have initiated the positions from much lower levels it is better to take off some profits so that we can get some other good time to reenter. Even if you book profits in nifty there would be some stocks which would be offering some trades on the long side and it includes HDFC bank and TCS as both are entering into a fresh buying mode. Though HDFC bank can be considered as a strong stock TCS might get into the positive side due to some short covering. A good rally in copper would be a very big positive factor for nifty especially the metal stocks and thus consider this as a decent rally in the current short term range bound market with some limited upside close to 5500 levels. Thus if i square off my trades close to 5400-5410 i would wait for a clarity of trend for any further up move. On the downside there would be lot of buying interest coming close to 5300-5290 zone .Lets keep a range of 5250 - 5410 and no need to create any positions on the break out.
