Nifty gave a range bound session by holding the support zones but the upside momentum was evident in all the major names especially mid cap stocks. The advance/decline ratio was in favor of advancing stocks and thus nifty still has the momentum to reach the upside target of 5400+. The immediate support zone lies around 5200-5190 levels as the break out happened from this region. Dollar/INR gave a very positive move so as to support the positive sentiment in the equity market and it is yet to see whether it would break the crucial support zone of 55.30-.40. We could see lot of buying activity happening in some major mid cap stocks and IRB infra and BEML would be my personal favorites on the long side. Both these stocks are able to give 8-10% return within a months time. If market is giving a profit booking session that would be the appropriate time to invest in these stocks. Volatility data is showing buying is happening on every dip and good premium in nifty futures would be in favor of the bulls. Expect profit booking sessions in between this short bull run and it is better to reduce high beta names if the market starts going above 5350 zone. The trading range can be 5260-5360.
