Nifty above 5305 is in BULLS Hands
Stocks on D-Street might trade in a narrow range,after the Sensex lost more than a percent on Thursday due to profit booking. Do not expect a big rally in the indices, as it is clearly evident that there is lack of support at higher levels.
It looks like the market is in a selling mode, as traders expect the central bank to raise rates at its meeting on April 20. The inflation numbers for the month came in at a 17 month high adding fuel to fire. So the momentum is clearly in the favor of bears for now and any up move could be used to book profits or trim your holdings. There is good amount of selling in banking sector and this is likely to continue in the next week or so. Stay away from the Banking stocks.
There were some fire works in select Midcap stocks like Prime Securities, Kamat Hotels and Excel Infoways, which managed to register double digit gains. We recommend Shorting banks like IndusInd and Development Credit Bank for bears, who would like to short the stocks. It is not advisable to take bullish positions in the current market scenario and one could take stocks of the market in the later part of next week after the RBI meeting.