Nifty spent one more day well within the mentioned range and it is not expected to make major moves till expiry.Though nifty is spending the days in a narrow range individual stocks are giving us lot of trading opportunities.Pharma sector would take a pause in the downward move and it is all set to make a major bounce back let it be Biocon, Ranbaxy or Auro pharma. As i mentioned in the previous posts it is better to lighten the beta of the portfolio and profit taking sessions in banking biggies like SBI and Axis bank were much visible and needed after a huge rally. Volatility data is not showing any additional short build up other than the previous day and there is ample evidence to believe that lot of short positions are lying close to 5730 zone. Turnover data is showing good amount of liquidity from the foreign institutional traders and as long as the volume supports the trading activity it would be in favor of bulls but as a cautious approach there is no harm in booking some profit at current levels. Though world markets are still not giving any major move the domestic market does not seem to care much about that but one should be looking into relatively under performed sectors like pharma and IT.
Stock to watch
Orchid Chemicals - The stock is expected to complete the consolidation phase of 2 months and it is expected to give a move to 135 zone once it crosses the hurdle of 116-118. I would like to keep a stop of 110 for the current trade and it is expected to move to the target zone within a week or two.
