Nifty spent the week in a tight range of 5350-5420 and it is expected to trade higher till 5470 with an immediate support zone close to 5310-5320 levels. Though the targets are a little bit higher than the current levels it is time to unwind some of the long positions and it is not a time to create any fresh longs. It has spent enough time at 5400 zone and the levels are once again proven to be difficult to cross. The volatility index is trading close to the years low and nifty could drag from the current levels as the volatility is expected to rise in the coming months. The current expiry could be peaceful as we are close to it and the options positions are already been built in. Turnover data is showing liquidity is driving the rally and lack of retail participation is still a drawback for the current rally. If we look into the stocks stronger stocks like Axis bank, ICICI bank are close to resistance zone and struggling at the upper end of the channel. In the large cap front L&T is the only hope and was a clear out performer in the whole rally. The trading range for the week can be 5320-5420.
