Nifty gave a decent up move once it started trading above the immediate resistance zone of 5180 and it is expected to extend the rally to 5250-70 zone where one could start booking the long positions. The mentioned zone would be crucial as the down ward move started from here.If we consider the recent low around 5030 as the first wave on the downside nifty is coming up to some important fibonacci levels close to 5250-5270 to form wave 2 before the next leg down. As mentioned in the previous post bank nifty should be the major index to consider in the days to come and SBI could give a leading indication for further moves in nifty. We could see the 'dead cat bounce' in banking stocks and these wild moves are huge short covering but metal stocks are witnessing good buying at lower levels. On the downside 5130-5140 could act as the immediate support zone and the trading range can be 5140-5270 and use the upper to exit the longs instead of initiating new.
