Stay long on Nifty with stop at 10,150

The Nifty Bank index is still trending below its all-time high of 25,200

The market hit new highs on the back of the massive recapitalisation plan. Bullish global trends also helped to keep sentiments high. The Nifty hit a high of 10,340 before seeing profit booking. Although FPIs (foreign portfolio investors) didn't really buy in meaningful quantity, retail and domestic institutional buying in PSU banks pushed the market to new highs.

Obviously, the new highs confirm the long trend remains bullish and momentum may have accelerated. However, this is a new zone so, target setting is near-impossible. Depending on levels of optimism, any target between 10,400 and 10,650 could be hit. The movement was