Nifty got decent support at lower levels and bounced back close to 6000 levels and is expected to trade till 6150 in the short term. As per the technical charts the target is 6150 but derivatives data is showing lot of options build up is happening in 6000 call options. Thus the market can take a pause close to 6000-6050 levels and short term traders can book their long positions close to these levels. Turnover data is still strong and institutional traders are all set to trap retail investors at the higher end of the channel. Thus concentrate on a few high beta stocks and keep the volumes in your control. Traders usually have the habit of getting excited when the market is showing a strong momentum and once would have seen everybody has started talking about talking about a bull market when it reached 5900. One sector i'm hopeful for further rally is the metal sector which has a lot of potential on the upside especially the ones like Jindal steel, TATA steel and Hindalco. One should try to get into these stocks when nifty gives a small correction and banks would not be the choice. As i had already mentioned many times in the blog a bull market starts with the huge momentum in auto sector, banks would out perform in the accumulation phase and metals would outperform in the last leg of bull market. The current bull market would be much bigger as still have interest rate cut in the coming year but one should be able to identify the right sector to be in at each leg of the market.
