Choppy Market ends with gains.

The mechanical trend indicators are suggesting an up move, at least for the short term. Traders should look to buy on dips. This is not easy to do since the up move is coming while the primary trend remains down. With all the reservations, short selling should be avoided by swing + position traders while the short term trend remains up.

The Nifty is still above the trading range boundaries – 2550 to 2750. Now, this can change. But while the Index remains above the range, we should follow the charts and take long positions. A close below 2700 will be the first sign that the up move is floundering. The mid point of the trading range is 2650. A close below 2650 will suggest that the up breakout may have failed. Till this happens (if at all), stay with long positions.

Is Nifty 2000 still possible ?
Yes, it is. The current up move is considered as a bear market rally. After a 4000 point decline, a rally can come any time. This is what seems to be taking place.

Stocks to Watch:
Stocks that have out performed the market should be watched for a buy on dips strategy. These include: GVK power, Andhra Bank, Tata telecom (ttml), IVRCL Infra, tata steel. (I own tata steel shares)