Nifty broke out the narrow
consolidation phase and made a new high close to the mentioned upper range of
5360. Though it broke out from the consolidation phase we could not see the
positive momentum in major large cap stocks. The turnover data and the volatility
data are still in favor of the bulls and we could see huge turnover in equity
segment. Thus the traders are more interested in playing the stocks than nifty
as the cash market volume shows that. On the downside 5270 can be considered to
be the strong support zone and that is where lot of buying has happened in the
previous days. No major divergence could be seen either in major stocks or nifty for a major downside move and the premium is showing that the rally is still intact. Small cap and midcap stocks are leading the rally and large cap stocks are relatively under performers. The moves are suggesting a topping out pattern to be formed soon close to 15-18th of July as nifty has to complete a secondary rally too to confirm the top. The trading range can be 5270 - 5400 and the upper range can be used to exit long positions .
