20th april 2009...

last three days nifty is trading in sideways range roughly 3300-3512, much more beneficial as an intraday play, positional players can hold on to longs with tline as closing basis support/tsl. the other way to trade this could be waiting for a breakout of this range for fresh positions. some caution going ahead as nifty is overbought and still hovering near 200 dma and has hardly corrected since rally low of 2540. the reader may recall that i had marked the bullish nifty fut reversal at low near 2550, its a 1000 points on the trot since then and all stocks have flied even 40-50%. well at the moment its not very bearish and uptrend still on but one may ask is this high one way move sustainable short term. if huge profit booking comes in, 3147 can act as good support if 3300 breaks closing basis.