Nifty has been trading between the two lines 5750-5905. There is not much fundamentals to cheer for and nor to be upset with. We are experiencing foreign currency volatility at the highest levels. Developed markets are experiencing a turnaround. China's inflation was announced today which is at the peak this year and and good for the slowing economy. Housing data as i mentioned in last post is improving in US whereas unemployment is stable at 7.6% Looking at commodities, Crude was trading at 42 week highs upto 5th july but since 2 days supply concerns have ease which as seen some profit booking on Crude oil around the world. Gold and Silver is stable and range bound. Dollar has been weakening against major currencies after a good rally last week due to easing economies and easing crude supplies worries. Coming to Technical terms, as headline suggest index is trading range bound between 5750-5900 while hovering all the important moving averages. Indicators are flat. But we are biased more towards upside as most of the nifty stocks are showing bullish signs. We would recommend safe trades to go long above 5900 with strong sl of 5832 then. Supports are seen at 5811/5762. DONT SHORT UNLESS BELOW 5750.
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