The index futures saw some buying activity happening close to 5100 and
gave a rally close to the previous top of 5190 which is the upper band of the
range. As said in the previous posts it is wise to book the long positions
close to the upper band as we could not see much activity happening in the
options segment. The volatility index gave a sharp fall indicating buying
happening at lower levels and stock futures were also trading with decent
volume and good open interest. On the other hand if we see the equity market
turnover we could not see much buying activity happening and institutions are
still net sellers on the higher end of the channel. Dollar/INR has made a new
high and it is quite illogical to believe that equity markets would rally along
with the dollar. Thus it is time for us to wait and watch the movement in the
currency market as by making a new high it is again gaining attraction among
the nifty traders. Copper is again back to 415 levels after a short term rally
and this might pause the current rally in metals. Nifty is continuously getting
good support at every dip and if there are any long positions left in the
system 5090-5080 levels can be the stop and on the upside I would like to
maintain 5200 as the immediate resistance and a close above the upper bands
would be the trigger for next move.
