Nifty spent a range bound week between 5300-5400 and it is expected to consolidate further in the coming week but the range can be 5250-5350 as the momentum is weakening without a consolidation. In the previous session we could see a significant reduction in the premium and can be interpreted as a weakness in the momentum.Institutional traders have done their work with good buying interest but the retail investors are still not convinced the moves and turnover data is showing the same.We could see SBI breaking down below the immediate support zone and this would be a major set back for bank nifty in the coming week. A weak advance/decline ratio and a lower volatility index can be seen as the signals of a valid top formation but as it was a decent move on the upside we could see a secondary rally on any dip and 5470 can still be an achievable target on the secondary rally and that rally can be a trap once it moves above 5400 zone as the valuation would get rich. If we see bank nifty as a leading indicator in nifty we could see Axis bank is the only one good performer in the large cap banking space and all other banks should contribute for the index to move up. The trading range can be 5310-5400 and i expect a dip below 5300 zone would attract some buying with a stop of 5250.
