Nifty ended close to 4850 in a range bound session and 4880 level would
be the key for a further move as we could see lot of short positions are lying
there and It could come in a buying zone above the mentioned levels. We could see good short covering in most of
the large cap stocks ahead of RBI policy and this could lead to buying if nifty
could surpass the mentioned resistance zone. On the downside the support zone
would be around 4770 levels and as long as nifty is within this range it is
better not to take any trading positions. Volatility data shows some short
build up happening at higher levels and thus any move on the upside would be a
short covering rally and it is yet to see whether this move would trigger some
buying opportunity. Turnover data is not showing any improvement and Dollar/
INR is getting good support at lower levels of 55.30-55.40 levels as mentioned
in the earlier posts. These would be two key trend reversal points for Indian
equity market at least in the short term.
