Nifty update for 25th October 2011

Atleast for an hour nifty was so tempted to touch 5160+levels but it could not and finally banking sector did the damage. Options data show you volatility has cooled off and it shows that traders are still holding on to their previous shorts and not many fresh positions are there in the system. Lot of shares showed good buying interest especially banking stocks in the initial part of trading. Still 5180 is considered to be a fearful level to worry and the longer the consolidation takes place the more biased would be on the long side. The upmove above these levels would trigger a short covering rally and fresh buying as Nifty and bank nifty are moving in the same direction. Indices are waiting for european events and credit policy and if it encourages the market it could see more upside . On the downside let 5030 be the range. Till this range of 5030-5180 breaks only option writers would be able to benefit. As the turnover data shows people are least interested in the market as they could not take a position on the long side as they are met with huge amount of selling from 5160 levels.