Nifty is still stuck in the tight range and it is yet to get out of the
range for a smart move. As it is getting support at lower levels it and getting
resisted at upper bands it is always better to buy the dips and exit at higher
levels. Technically along with the price moves if we see the time spend we
could see buying is happening on dips and till 5020-30 levels are held the
trend on the upside is intact. Thus it is worth taking a chance on the long
side by keeping a stop below 5020 and going short on the upside by keeping a
stop above 5200. If nifty has to rally it has to do it within a week or so as
the volatility index will again start trading below 20 and that would be a
major threat for any up move. The volume is still on the lower side and
dollar/inr is still trading on the higher side. As said in the previous posts
55.30-55.40 would be the major reversal point and till then market could remain
range bound but with a positive bias as all the major events are priced in. In
the equity segment Ranbaxy is holding the support zones and 470-475 seem to be
a decent support zone for the stock. As long as these support zones are held
the stock could see a rally upto 510-515 levels. The trading range for nifty can
be 5020- 5200 till next week as we are yet to see major activities in the
options segment.
