Nifty struggled to cross 6100 in the previous week and is expected to complete the correction till 5900 in the short term. There would be lot of thing to consider while nifty is at a crucial juncture close to 6100. The volatility index has started rising ahead of the RBI policy and would continue to rise till the event and i would not expect a major breakout of the current range before the event. In the hourly chart nifty has completed a 5 wave pattern and waiting for A-B-C waves in the shorter term. Turnover data is still strong with huge FII turnover and it is evident that they have already accumulated huge positions in cash market and waiting for retailers to get in so that they could take out some money from the market. Quite surprisingly retail traders have not shown any interest in the market till now and this is really slowing the momentum in the short term.All the other indices are showing significant correction and nifty is consolidating not considering the major market and this is not a signal of matured market. Thus wait for the range breakout for creating any fresh positions and it is better to lighten the position on the upside if any rally comes above 6100 levels. Nifty cannot create huge selling opportunities as the premium is still very low and it shows that it is not topping out at this point of time. Two stocks to watch would be Axis bank and HDFC bank.HDFC bank has given a bullish break out in the hourly chart above 665 levels and is expected to touch 695- 700 in the short term above the previous high. Axis bank is showing some negative momentum and giving lower top lower bottom patterns in the hourly charts. It would confirm a decent break down below the previous low.
