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  Opening of the new FEB series must be enticing for the participants sitting on the fence. Momentum is still intact, FII flow increasing, Euro-zone promising to sort their problems, INR appreciating, Global news benign etc. We see it is too good to expect continuance of northward journey prior to a sharp & swift correction & it is only matter of time. Professional traders are just waiting for the cautious participants to throw caution to enter the ring & they will commence booking first round of profit booking & shake out the weak holders from the system. Technically nifty is at the upper line of one year downtrend channel & we do not expect it to cross in first attempt.  For the day we see 5150-5235 as the trading range, breach below 5150 will head for 5100-5120(low probability) & cross above 5235 will lead to 5280-5300(high probability).

 Bank nifty has been mercurial & high beta index compared to nifty as usual. Yesterday’s movement was slower & sideways than nifty. Traders are warned that it very close to upper downward slopping weekly channel which market has respected for more than year & it may be too much to expect to cross this at first attempt. We expect it to lead the correction prior to nifty in terms of time.  For the day we see 9800-10100 as trading range with 10250-10300 as resistance & 9600-9650 as support.       

We recommend a buy on JINDALSAW at 139 with the stop of 132 for the target of 155 & 175.

We recommend a buy on TATAPOWER at 106 with the stop of 101 for the 123 & 132 in next 15 days.