Nifty made a new high above 5400 and it is expected to trade till 5470 with an immediate support at 5310-20 levels.As i have discussed in the previous posts though 5470 is the ultimate target we could use any levels above 5400 to unwind long positions instead of creating new. In the case of stocks the scenario would be different as stocks could rally a bit more compared to nifty. The volatility index is one of the major factors that could slow down the rally in nifty as it would fix its own limit to go down.Turnover data is showing is weakness in momentum and the rally is purely liquidity driven by the institutional players.If the excess liquidity is pumped into the system market would always give a trading opportunity than an investment opportunity. Thus trade the levels with strict stops as the reversal could be harsh. In the equity front IDFC would be one promising stock from a trading perspective. The stock is expected to give 5-6% return above the previous high as it is a break out trade and the stop can be around 126-128.At this point of time when the global rally is triggering an up move in the Indian equity market it is wise to look out for reversals in global trends as it would give us a leading signal. On the downside 5310-5320 could act as a strong support and any dip towards 5250-5270 could attract lot of buying and the options data is showing protection of 5200 levels till the August expiry.
