Nifty update for 09 December 2011

It was red all over and Nifty was about to kiss our lower range of 4930 but had a rebound from there. If the European summit brings more worry it would be a severe cut towards 4840 levels from where the gap up happened. As of now the interesting play would be around 4930 levels. It has to be decisively broken on the downside for more downside targets. Stocks had a severe cut especially banking and metals and biggies led the fall.The turnover data shows there was lot of long unwinding and huge short positions got created. As far as Europe is concerned it would be an important day as the summit is happening.Nifty would still be in a trading range but the deeper cut in stock futures would be more painful for the retail players.So as of now lets see whether 4930 holds on a closing basis and if it breaks that range on the lower side , lets see 4840-5020 as the new range. The major distribution zone for nifty was around 5010-5030 levels and this would be the major level to watch out on any bounce.