Nifty held the important support zone of 5250 from where the index touches an important trend line support and a bounce is possible. The cash flow indicators are in the oversold territory from where lot of buying can happen.Thus the strategy would be even if there is a trend line break down in nifty look for a buying opportunity at lower levels and go short on stocks if they are breaking the support zones. Stocks like financial technologies and BATA india are looking weak and i would be a short seller below the previous low zone. Volatility data is showing that though there is some short build up buyers too are adding to their positions. The fight could be interesting and there would be lot of put writers active in 5200 zone. Bank nifty and nifty are at a crucial juncture of a decent trend line support but the banking stocks are looking like really dangerous on the long side though some dead cat bounce could be there. Dollar/INR has broken out of the range and 57 zone would be possible with the pattern target. The trading range can be 5200-5300.
