CHOPPY, VOLATILE INTRA DAY ACTION FINALLY LEADS TO GAINS

The markets continue to be choppy - this means that prices move up and down without making any head away in either direction.

Beyond this choppiness is the trading range which has developed for the Nifty - between 5650 and 5750. The Index has spend five trading days inside this range. A breakout above 5750 or a breakdown below 5650 will give a directional move. I cannot forecast the direction in which the Index will finally move. Suffice to say, once the Nifty moves out of this range we should get on board.

The Bank Nifty has seen gains for the past four days, however small. Since the Bank Nifty had fallen a lot, these small gains could easily be considered as a counter trend move before the main down move resumes. The last pivot high in banks was 11160. If and when the Banks move above this pivot, buying will be justified. Till then, trade on the intraday charts with the purpose of capturing small moves.