Nifty is facing stiff resistance in 5950-6000 region and it might head lower till 5800 in the near term before moving to higher targets. Bank nifty is giving a leading signal by reaching the trend line resistance and PSU banking space might see some correction in the days to come. The premium is still on the higher side showing the over optimistic attitude from the traders and these kind of situations should be handled with hedged positions. 5800 put Dec is trading at Rs.20 and that is one of the cheapest options available. As we have two more weeks to go for the expiry it can be a decent bet for this minor correction.Turnover data is still strong and we could not see any short build up till now and the medium term picture still look good with a bullish bias.Metal sector is yet to give a decent performance and that is the sector one should bet on if there is an extension of this rally. Thus i would be waiting for a dip below 5900 levels in nifty futures to be a buyer in this dip. It is not wise to build long positions in nifty and 5900 + levels and it is good to have a protective put with the long positions.
