Nifty had a range bound session and as said in the previous posts it is expected to trade higher till 5530-50 levels with a reversal close to 5320-30 zone. Though i wont be a buyer in the break out trade in nifty PSU banks are expected to out perform the index in the coming days. The bank nifty is still lagging nifty and that would not be a good indication for nifty but most of the banks are making decent base ahead of the monetary policy and i expect it to have a positive effect on bank nifty. With the positive news flow S&P has done with the upside target of 1450 and i would be cautious on any up move beyond this. Volatility data suggests some short build up at higher levels close to 5450 and any positive news flow would force the short sellers to cover their positions. Turnover data is showing the injection of liquidity continues and as long as the fund flow is there go with the flow. SBI is consolidating at 1850-1900 levels for quite a few days and it is building the base around those levels for a 90-100 points move. 1900-1910 seems to be an immediate resistance zone and a move beyond this could take the stock to 2000 levels. If you are reader of this blog for quite sometime you could see the bullish stand taken is quite justified for quite a few days and lighten the longs when we are close to the target and that is way one could prove how smart he/she is as a trader. The trading range can be 5430 - 5530.
