Nifty held our lower range of 4970 and gave a sharp bounce back and ended close to the resistance zone of 5100.As it has established multiple support zones close to 4970-80 zone it is better not to go short in this market and use the dips to build long positions if there are any further dips. As i said in the previous posts nifty would be a little expensive above the resistance zones and thus instead of creating fresh long positions it is better to hold your existing positions. The turnover data is showing some improvement and some positive news flows are good for the market at this point of time. It would be interesting to watch how nifty would deal the downward slopping trend line resistance and other hurdles above 5100 levels. As a trader it is better to wait either for a top formation or for a dip for further trades. If there is no major news flow 5200 levels are seen only between 22-25 June 2012. Thus it gives the trader to wait for a small range bound session in the coming weeks and the chart says it is safe to exit longs at any levels close to 5100 levels. Volatility data shows huge short covering and less buying in nifty futures but mid cap stocks are really giving some smart moves on the upside and it is for us to wait and see how nifty is planning to move.
