Nifty weekly prediction 10th - 14 October 2011

Nifty witnessed a sharp rally towards 4940 levels. As we saw in Fridays move further up move above 4950 was resisted by short positions above 4900 levels,decrease in cost of carry with good amount of open interest volume reveals that fact. As it was a huge gap up opening on friday not many people would have got the opportunity to participate in that rally.We saw volatility is kind of getting at 32 levels and it indicates buying on dips and every dip till 4750-4800 range would be utilized for buying. My upper range till 12th of October would be 5030-5050 as i expect a top around that date. For options writers who is looking for a range, that would be 4800 - 5050. As posted on thursday read the divergence that is happening in Dollar and accumulation when nifty goes down and don't neglect these kind of rally's with good participation from institutional buyers.Bank nifty formed a new low on thursday and it would come back to retest the lows in the coming weeks.Though we cant say that the problems of U S and Europe are over as per time cycle nifty is completing one year cycle of bear market from the high of 6300 in the first week of November. People who are going short should be watchful as we might be close to the bottom within 10-20 days