As said in the previous post nifty gave a short bounce back on monday and can extend the bounce back to 5300+ levels. If we observe the charts we could see it only as a bounce back and not long accumulation as the stocks are still recovering from their downside support zones. In the commodities market there is an upward momentum in both crude and copper.Thus for the equity market to set off a new rally crude oil has to cool off and it does not seem to happen as it is making higher highs. As per time cycle we could expect a trend deciding move close to 5th of may (4th or 6th of May) and till then the range bound situation is expected to continue.In the equity segment banks are still not showing any signs of long accumulation and that would remain as a major worry (Indus ind bank would be an exception). Cement stocks have retraced from their previous highs and some of them are forming a base for a short term up move , so if there is an extension of the rally i would like to go long on these stronger ones.Thus lets keep a range of 5190 - 5330 and consider any upside momentum close to the upper band as exit points.
Positive bias (short covering possible)
Tech mahindra ( high volatile stock)
Sterlite Industries
Negative bias
Sail
