Nifty update for 27th September 2011

Nifty came down closer to our short term target to 4750 and gave a bounce back till 4870+It was a smart rally from the days low and it was expected from a major low like 4700-4750 zone. 27-28 September would be crucial days as it form a bottom and rally further to 4970 - 5000 zone. If Nifty goes down and take out the low of 4720 i dont expect Nifty to bounce back further to 5000 levels. Below 4700 (closing basis) it would be a severe cut to 4300-4400 levels. It is better to be bearish only below 4700 and not before that. It was always worth playing that bounce from 4750 for a 100 points and we could catch it as we covered our shorts close to 4750 (read previous post). Anyway the upside cap seems to be at 5000 -5050 levels till the end of this month (maximum range on the upside)