Nifty update for 17th November 2011

It did the much awaited bounce back , not a valid one for Nifty but banking stocks had a bounce before breaking their 52 week lows. A bounce could extend up to 5150 - 5170 and it would be clearly a sell on rally market. As i mentioned in my earlier posts there are multiple support zones at 4970 - 5000 zone and it would be interesting to see whether it would hold this zone. Play the bounce only with options and it is not worth playing with stock futures,on the downside there would be a sell signal below these support zones. I expect if nifty takes out the support zone banks would take out their 52 week lows.For any up move their needs to be a consolidation period and it does not seem to be happening . As i was mentioning in my previous weekly reports it would be a painful journey unless and until it takes out 5330-5350 (on a medium term view).
Tine cycle tells you that any relevant bounce would take between 21-26 and that would clearly tell you that Nifty would be topping out.