Nifty update for 7th October 2011

Nifty gave a decent bounce to 4840 levels from the low of 4720 and i would still hold the range of 4600 - 4880 on the upside and till 10th of October.I'm not seeing a major break out either side till that date. Dollar index is not at all at a comfortable level above 79 and it is a major threat for Nifty . The good news here in India is India VIX cooling off at 36 levels and Dollar is kind of topping out at 49.50 levels. Dollar is getting ready for a good and sharp move and that would be the first notable divergence.It would be interesting to see the movement of dollar upwards / downwards..let it be anyway , it would be a sharp move for sure.As we are close to 90 days from the previous major top of 5760 this week would be crucial for a change in the short term trend. It is better for bears till 4720 - 4700 to be taken out for another round of action. Option traders could concentrate on writing December options as lot of extra premium is available in deep out of the money options too.