Nifty held the support zone and broke out of 5800 zone after a long time. It is expected to trade till 5840-50 with a reversal below 5700. Though there was a shocker from the U S market the structure of Indian equity market has not changed. S&P is at a major support zone of 1390 and break below that could lead to a major fall in the U S market and it could under perform the Indian market in the medium term.As i said in the previous post the premium was so heavy so that it could compel any nifty trader to cut off the long positions above 5800 mark level. The charts of stocks are still interesting and many stocks are giving break out on the upside like Infosys and PFC but wait for the dust to settle down and create positions above the previous high if there is no panic selling in the market. Volatility data is showing addition of long positions and it was very evident as it was not a gap up opening.Turnover data is showing an uptick in the volume and fii's have again started pumping in the money. This shows that lot of buying positions have been created by traders and it would not be practical to say that Indian market will come down once the U S market fall.Thus any fall in the market could be used as a buying opportunity and the stop should be tight around 5700 and as long as S&P is holding 1390 levels i dont see any panic selling happening in the market.
