Nifty update for 09 Nov 2011

Nifty spent one more session with no gains and it gives you some signals about a big move coming in. Turnover data shows that retailers are no more interested in these range bound market buy small stocks are seeing lot of buying interest. As i said in my previous post SBI gave a second break out above 1990 and gave a decent rally. I would still be a seller on any rally and waiting to place my short positions as and when required. Implied volatility is still rising but at a marginal rate, it reveals some fresh shorts are in the system.People would still carry their long positions till 5200 is taken out on the downside.The out look o the market is slightly positive and 5400 + levels would act as stiff resistance levels.Though one does not have to short the market at current levels one should be exiting large cap stocks on rallies and include some small cap stocks as more upside is left with small caps than large caps.SBI is result awaiting stock now and it would direct the market movement at least in the shorter term.Institutional investors have not left Indian market as the turnover data shows they are still buyers in a range bound market. As of now consider 5200 as the base and trade the stocks and take out daily profits. Option writers would be getting good premium in the month of December by keeping a range of 5270 - 5410 as the range.