Nifty futures bounced back to 5840 levels but continued its downward journey towards 5500 levels. As it was a counter trend move no buying was advised and judgement proved right in that way. I expect nifty to hold 5470-5500 levels for some more time as some of the major stocks have given reversal signs. Nifty futures is expected to give rise up to 5750-5800 with a reversal below 5500. As the volatility is at the peak it is wise to sell puts than buying calls as it would be difficult for call premiums to rise even if the market moves up.The hourly hart of nifty is showing a falling trend line break out above 5600 level.Momentum indicators are positive and all the major stocks are giving the signs of reversal. One interesting stock at this juncture would be Indus ind bank, trading above its 20 day moving average the stock is about to give a bounce to 400+ levels in the short term. Buy at 378-379 range with a stop at 367 for a target of 401-405 in the coming days. Options data is showing addition in 5700 call and 5400 put and 5400-5700 can be a broader range for some more days.
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