Nifty spend the day in a sideways mode and it is expected to consolidate close to 5300 levels before moving up. 5400 levels has been declared as a resistance zone by the call writers but the volatility index is not reacting as in a bad way. Thus it could assumed as long unwinding instead of short positions. The IIP data once again proved that the rally is not running on fundamentals and liquidity is driving the rally. Turnover data is showing some profit taking at higher levels.Dollar/INR is close to the crucial support zone of 54.80/55 levels and as mentioned in the previous posts a bounce could be expected from these levels.As i said in the previous posts too a long position in nifty could only be initiated with a stop close to 5250-60 levels and let nifty come close to these levels to be a buyer. Global markets are at the upper end of the channel and profit booking is obvious in that case too. The trading range can be 5310-5400.
