Nifty update for 18th October 2011

Nifty gave a range bound session and now lets see whether it could hold 5050 levels and move upwards.If we join the top of 5760 and low of 4720 current nifty levels of 5130 - 5140 intersect with a Fibonacci number and that tells you that it would retrace from those levels and that's what we saw today. Nifty just added one more resistance level above 5150 and made it clear that it is in a consolidation phase. I wont jump and go short or long on nifty at this point. As i said in my previous posts an option writer who is delta neutral would be the only guy who is getting some profit from this tight range and wait VIX to come down to 22-23 levels and as i a buyer i am looking at those levels to get the options at a cheaper level. 5050 and 5180 are the key levels to watch for and volume data suggests that a good amount of profit is being booked at these levels. As a trader if I'm a long on nifty from lower levels and if i feel that nifty is facing resistance at 5150 levels and it gives you the time to exit so why shouldn't i square off my long positions and wait for a new trend. Breaking of 5080 would tell you that nifty has formed a top and breaking to 5000 levels and if it has to happen to happen tomorrow is the date for that.