Nifty had a range bound session extending the bounce back to 5650 levels. The upper levels in nifty seems to be capped at these levels and we could see some sell off happening at higher levels and it is clearly indicating that if anyone wants to be a seller in this market it has to be from the top and break down trades can be a trap. Turnover data was poor and short covering in stock futures triggered the upmove. One stock that is clearly giving an upside momentum would be WIPRO and it is showing the signs of a bullish break out from a downward slopping channel to 400 levels soon. Let it break out from the previous high and December 400 call would be available at Rs.3-4 and i would like to go long here in this counter. On the sell side ICICI bank is getting resisted at some major moving averages and it is expected to trade lower in the coming days.Volatility data is showing a marginal increase in the premium with a negative closing for the volatility index indicating some long positions were created at lower levels but due to the tight range traders are playing safe by booking at higher levels.
