Nifty held the mentioned resistance zone of 5270 and headed lower till 5200 in the previous week. It might get support at lower levels close to 5160-5170 and it is advisable to get rid off some short positions close to the support zone.If we have a look at the indices we could see bank nifty giving the downward move led by the weaker ones like SBI. Nifty could hold on to the support zone of 5170 once more before breaking down because of expiry and earnings season. As the volatility index is trading at year's low there is no case for being very bullish in nifty and it could spend some time in a range of 5000-5300 for a bigger time frame. A trader could use these deeper cuts to get into stocks like TATA motors (below 200) and TATA steel (with an avg price below 400). These large cap investments could turnout to be good in the long run as we are due for some major rallies after a month or two. A correction or a bigger range bound market is quite obvious before the beginning of a major rally and investors could use the deeper cuts to get into stocks. Bank nifty could see some more downside and SBI and Axis bank could lead the downward momentum . Though ICICI is holding strong to the upside levels the stock is trading close to the major resistance zone of 990-1000 in the weekly chart and i dont expect the stock to cross these levels easily. The trading range for nifty can be 5170 -5270 and a break below the support zone should be considered as a sign of weakness and it could lead nifty to 5050 in the short term.
