Nifty crossed the mentioned resistance level of 4880 and gave a decent
rally on the upside close to 5000 levels. Apart from the gap up opening above
the resistance zone it did not even give an opportunity to get in as a buyer.
It is expected to trade till 5050 by getting support around 4880-4900 zone. If
you are a buyer exit the buying positions above 5000 levels and if you are
waiting on the sideline wait for a profit booking session to get in as a buyer.
The immediate resistance point lies close to 5100 but as a smart trader one
should get out as early as possible. We could see a tremendous increase in the
turnover showing some buying is happening at lower levels and it would be an
indicator for any turnaround in the short term. As a medium term view it is
still bearish with 4500 levels on the downside as no major reversals have
happened till now. A high volume day cannot be ignored just as a short covering
rally and the market breadth and volatility data were also showing some buying
happening at lower levels. In a nut shell one should not be a short seller at
this point of time and wait for a valid top formation for initiating any short
positions.
