It made a new low at 4900 and tried for a bounce back but could not sustain at higher levels. On every rise lot of short build up is happening but it is giving time to square off all the positions at lower levels.On the upside we could see some of the buyers are getting trapped at 5030 and 4980 levels. If there is any rally on the upside i expect these buyers would get a good opportunity to exit their long positions and the upside will get capped around 5050. In the previous week we have seen nifty getting stopped twice around 5050 region and the zone should be considered as an important resistance zone in the days to come.After some side ways move it is expected to trade lower till 4800 with a short term trend reversal placed at 5050 -5060 levels. Bank nifty has also come down to 61.8% Fibonacci zone and instead of searching for short selling ideas it is time for investors to look for buying opportunities in banking stocks.There may be quite a few weak banking stocks like Canara bank, Union bank and Bank of India but wait for decent bounce to go short in these weaker names.As mentioned in the earlier post Dow is at a crucial support level and it could be broken any time, read the U S markets along with the Indian equity market. If you are an investor breaking of 4900 would give you attractive buying opportunities and wait for selling climax points to get into banking stocks. Lets keeping a range of 4900 - 5030 as the weekly range.
