Nifty weekly update 8th November 2011 - 11th November 2011

Nifty is in a range bound and directionless mode and futures traders should exit by taking out daily profits. As i said in the previous post RIL, SBI and JSW steel gave a break out but SBI and Reliance could not sustain till the end but JSW steel gave its best. It doesn't look that weak on the charts but i would advice traders to take out some profit in large cap stocks like
SBI and L & T. SBI and l & t can do something good above 1990 and 1460 respectively. Even if one book profits at these levels too one can enter above the break out levels as these levels are so close. There is some profit booking happening in large cap stocks and that is very evident from the turnover data.Short covering and buying in smaller stocks help nifty to bounce back from lower levels. I would be selling my stocks on every rally and start placing shorts at 5400 + levels.People are still buying any dip in nifty and it would continue as long as 5200 holds. As a trader the short term bullish setup would not be there once 5180-5200 levels are taken out. An investor in smaller stocks don't have to worry about the volatility in the market and it is usual after reaching a top .As of now nifty is holding the Fibonacci number 5330 and can move to 5420 levels, but that rally should not be bought buy investors. For traders it would be good to buy near out of the money calls than futures as it is close to a top. As of now 5200 - 5420 would remain as the weekly range. Nifty is in a longer time cycle this time and i expect the major consolidation or downward move to start only by Nov 21 - 26 - 2011