Nifty update for 27th December 2011

We could see a decent up move today supported by some large caps.As we have Christmas holiday season in U S and European markets it would be a big relief for Indian markets.Beaten down names are continuing their up move and we are close to an important resistance point of 4840 levels.Volatility cooled off and it is telling you that not many short positions are left in the system. Even if there is a negative move it should be read as profit booking session and not as short positions.These moves cannot be considered as valid as these are not supported by volume.By seeing the poor turnover data we could only trade these stocks from an intra day perspective.If a trader could initiate delta neutral positions in options that would be the best for Index traders.Thus lets buy a dip and let Nifty confirm a top and then go short in the market.As long as the short term trend is on the upside there is no need to go short in the market. In a topping out situation it would first take a dip and that dip would be bought by traders and then it should confirm a top.Thus as long as that situation happens lets trade the stocks from an intra day perspective because now we are in the middle of a short term uptrend and it does not make sense to buy and hold Nifty for a day or two.I don't expect nifty to make an extra ordinary move this week because of the lack of volume in the market.It could most probably be in a range bound session and lets see how Nifty would behave close to 4840-50 levels.