Nifty opened below the mentioned support zones of 4920-30 and it is
expected to trade lower till 4800 in the short term. The important resistance
levels on the upside would be 4970-80 from where nifty started losing its
upside momentum. It was a quiet market yesterday with some whipsaws on both
sides. In a quiet and range bound market a smart trader should always watch the
price action of large cap stocks. We could see major banking stocks SBI, Axis
bank and ICICI bank breaking down from the current price range. If we have a
look at the turnover data, we could see some huge selling happening on any rise
in the market. Dollar/Inr is making a new high everyday and the GDP data
revealed how weak the fundamentals are. It is better to wait for a good accumulation
pattern in large cap stocks and we could see some buying happening only nifty
spends some time in a range bound market. Volatility data shows some short
build up is happening on every rise in the market and thus I would not be an
aggressive buyer in this market. The price range could be 4870-4970 and
consider the break of the lower band as a break down to 4800 levels.
