Nifty update for 1st November 2011

Nifty ended on a slightly negative note after a range bound session. I would still like to maintain a range of 5250-5470 and it would be a buy on dips market. On the higher range i would be a buyer above 5410 levels and on the lower side close to 5250 levels. Volatility was on a rise through out the day and it shows some fresh short positions appeared on highs. It seems to be the short positions created by retail investors as it did not have any impact US dollar vs rupee trading. Stocks have seen plenty of long build up and it suggests buying on dips will continue til 5470 is achieved.Though profit booking is evident in Nifty futures i expect the market to gain some volume and push it on the upside after taking a dip below 5300 levels. Many could possibly join as fresh buyers as they did not get an opportunity to participate in the recent rally. India VIX shows that if it comes down it would be with increase in volatility and option writers should make use of the extra premium available in nifty options. Let the range be 5250-5470 and lets wait for the reactions from the market. I expect nifty to be in a range bound - longer side till the last week of November as some important time cycles are due by that time.