Nifty update for 21st October 2011

It was again a buy on dips market but it was not like the same when you got support at 5000 levels !!!When nifty covered its short positions dollar made a high close to 48.90 and India VIX rose by 6%I would not be a buyer at the next dip towards 5030 levels and i would be a seller below those levels. Banking stocks are rallying just before their earnings report and i seriously doubt whether Nifty has the strength to cross 5180 levels. As a buyer i wont be a buyer at the dips for the third time, else i would wait for 5180-5200 to be taken out on the upside and be on the long side.Time cycle wise it formed a crucial level at 5030 and as long as it holds it is well and good and below that i expect a deeper cut towards 4900 levels. Institutional participants remained as net sellers and lets wait for the upside hurdle to be taken out for a change in the trend on the upside. It was almost sure that some of the shorts got covered and after noon rally was due to good movement in the banking shares. VIX data shows still there are shorts in the system and it would possibly get covered only above 5180 levels and 5030-5000 levels are important levels to watch out for on the downside.