Nifty update for 28th December 2011

Nifty has just breached 4800 levels but could not reach closer to our resistance point of 4840 levels. The chart pattern looks like a topping out formation and some of the biggies had a profit booking session.As said in the previous posts the first dip from here can't be judged as a short selling idea but can be treated as a profit booking session. We have an important level at 4640 to act as a cushion and that would be a crucial level for all long positions in the market. Even if Nifty is able to cross 4800 levels we have another hurdle waiting close to 4840 levels , thus we have a cluster of resistance points at these levels.If i'm a buyer i won't be comfortable on highs like 4800 levels and would be uncomfortable to initiate a fresh buying position on highs.If there is a dip to 4640 levels and if it is holding that level one can initiate buying positions. As a trader i would be squaring off my long positions anywhere between 4750-4800 levels.Turnover data is telling you that today's dip was due to profit booking at higher levels and short positions are yet to get activated as volatility was on the negative side.As said in the previous posts a delta neutral position would have given you handsome money in options.Thus be careful of profit taking in the coming sessions too but any up move should only be considered for intra trade as these up moves are not supported by volumes and we have some more lower lows left in Nifty.Thus we can consider 4640 - 4810 as the new range.