Last week, mixed corporate earnings kept investors confused over taking positions in stocks. But the buying from Foreign Institutional Investors (FIIs) and global cues supported the markets as they rallied to an all time high. Sensex and Nifty in the week closed up around 3.5 per cent.

On a high
The immediate resistance for Nifty lies at 8346 and 8400. It is prudent not to take short positions without finding suitable resistance levels. Nifty has support at 8260; a move below can cause minor sell-off. Most of the front line stocks are positive and one can create bull-spread strategies by buying at the money call options and selling out of the money call options.