Nifty update for 12 th October 2011

It was a profit booking day for the market and held our range of 5050 on the upside and it is surprising to see that FII buying was only around 600 cr during this 300 points rally.I would still stay with 4900 levels on the downside and dip to that level should be used as a buying opportunity.I had mentioned about two stocks in my yesterdays post , SBI and L & t ..both gave decent returns for an intraday trader as it gave 40-50 points profit(combined). Lot of shorts were getting created above 5030 levels and any move above 5050 triggers a short covering rally and further buying would push Nifty towards 5170 levels .Yesterday buying emerged from 4930 and 4970 levels and these levels would act as major support zones on the downside. Options writers could still maintain 4870-5050 range and far month options are offering you attractive premiums just because of the volatility factor. It is better to utilize those premiums to get better returns than trading Nifty futures. Watch 12 th October as a crucial day and it could be a major turning point for the market.