Nifty held the support zone of 5450 and rose to a new high in the recent period. It is expected to trade till 5850 with a reversal close to 5330. In the short term the recent gap of 5450 would act as a support zone. As mentioned in the previous posts PSU banks were one under performing sector and the bank nifty gave a new high in the recent time with the help of banking biggies like ICICI bank and SBI. We could see some huge short covering happening in metal stocks but should consider that as an exit signal. Volatility data is showing traders are going short close to 5500 but a positive news flow could again cover all these short positions. A good turnover data is showing some buying happening large cap stocks especially the banking names. Going ahead the important level to watch out would be 5450-5460 as the gap up happened from there. Dollar/ INR has also broken a crucial support zone which would be a positive factor for nifty. In the stocks front banks like Bank of India and YES bank are expected to out perform the index and pharma stocks like Ranbaxy would have a difficult time ahead.
