The rate cuts helped achieve the breakout that we have been waiting for all thru the week. It happened in both the indices and the charts suggest that there should be more to come in the week ahead. I had stated earlier on that swing trading is getting enabled in the market and that one should think beyond day trades. Sometimes, when our stock selections are not correct it would seem like we should stick to day trading. But realise that the fault there is our own. When markets are ready to recover, there is one type of trading and when markets are ready to build on a recovery, there has to be another type of trading approach. That is why I am indicating here is that we have now moved on to the second variety. For a lot of stocks anyway. Identify correctly and play it right and bigger gains will accrue. If you treat every trade as being the same the it is tough to make larger sums of money.

Next hurdles the indices are going to look for would be 25500 and 57500. For now, dips remain buys. Or sell Puts. Dont buy futures and short calls. That is a limiting trade when you expect some bigger moves. Do directional trades rather. It may seem like the Bank Nifty has already run. But looking at the Ichimoku Bull score in Neotrader, I find that it has not changed any in the last week- perhaps because all the moves came on Friday. I would conclude that this leaves good room for gains in the Bank Nifty. This could mean pvt sector names would improve. Hdfc Bk is good but suddenly some FIR case has come up against the MD and maybe cool things a bit, allowing Icici Bk or Axis to grab the mantle of a leader. Alongside NBFC stocks should also do well as the 100bps CRR cut will benefit them well. L&T Fin looks good for a move higher, among others.

The other rate sensitive is of course Real Estate and they already moved on Friday. The Realty index shows a wide CPR soit could get into some consolidation and hence stocks from Realty may move selectively.