The way our indices opened strong and went down and came back in vengence, to finally close at the upper end of the trading range, in the process Nifty closed above 5DSMA gives hope for a Pre-budget rally. US markets closed positive overnight, should help the sentiment to some extent, however, volatility cannot be ruled out due to roll over to next series before expiry, as lots of shorts are being built in March series which begin on the budget day, present good trading opportunity.
Number of times during the past 10 days markets going below 5100 and bouncing back to close above it, suggest some support seen in the area of 5050 to 5100; once this is gone then the markets are llikely to revisit january lows, as follow up buying is absent after bounces seen like one yesterday.
Strategy for the Day: Buy 5100 calls on weakness and 5400 puts of February series on rallies for intra day trading.
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