Nifty spend the day in a range giving a close near the resistance zone of 5270. In an upward move it is better to avid nifty and concentrate on individual stocks as the up move can be tricky. We could see the volatility started rising and it is not coming down with the positive momentum.Turnover data is showing huge cash inflow for the past one week and we could see the effect on mid cap and small cap stocks. In the coming days we could closely watch 5250-5270 to be taken out and if it does that it could again retest the previous bearish island of 5340-5350 levels but i would not be a buyer at this zone. As a trader i would be waiting to initiate a short in this zone as the stop is close by. If we see the individual stocks we could see some positive momentum in stocks like Reliance and Axis bank but the large cap stocks like SBI is still on a recovery stage from the heavy fall. ICICI bank is another one where we are yet to see whether the stocks can surpass the immediate resistance zone. I would still maintain the same range of 5140-5270 and a range break out can be used to exit longs in nifty and focus on individual stocks.
