Nifty update for 23 rd November 2011

It was a decent bounce back of to 4860 levels where some major resistance levels are placed.Many stocks saw short covering rallies especially heavy weights like TATA steel and Infosys.Bear market rallies would be there in any major markets after a sharp downward move. Nifty would be getting prepared for another move to retest 4720 and the moves show, it is not so far. The bear market rallies could extend maximum upto 4900-4950 levels before the next round selling resumes. The momentum shows that if nifty retests 4700-4720 levels again it doesnt seem to hold those levels.Turnover data shows there are sellers at every rise thus long positions should be played only for intraday and one should not carry a long positions.Lots of shorts are getting covered at 4780-4820 levels but new shorts are getting created at higher levels and volatility data reveals that fact. Dollar index and dollar vs rupee are making new highs every day and there is no logic for FII's to come back to India when the dollar is trading at at a higher rate. The range for the market would be 4720-4860