Nifty held the support zone and tried for a rebound in the second. Apart from the current consolidation phase nothing has really changed in the long term view. The consolidation seems to be a little more longer than expected but i don't expect the downward momentum to accelerate. As long as the left out feeling is there in the market it can be a buy on dips market close to the support one of 5520-30 levels. Volatility index is not showing much of short accumulation but the scenario is very clear ahead of expiry as it is creating a narrow range. It would be good to take out some profits in banking biggies like SBI and ICICI bank as both of these are high beta names and gave a decent rally on the upside.As mentioned in the previous post pharma space is the one to have a re look as most of them are getting ready for a bounce back. If we watch the currency space though there would be some bounce backs the medium term target would be around 52.50 levels and is expected to achieve in the month of October. The only concern in nifty would be the amount of trading activity happening at higher levels. Usually when lot of trading activity is happening at the top after a rally it could be read as a negative sign as a distribution pattern can be formed but none of the stocks are showing these kind of patterns and that could remain as a positive factor for nifty . Thus in a nutshell the index is taking its own time to consolidate and lets give that time for any further upmove.The trading range can 5630 - 5700.
