Nifty update for 11 th October 2011

Nifty once again gave a sharp pullback rally from 4890 levels and that reveals the strength left in the market. Reliance leading from the front helped Nifty futures to touch an important level of 5000. Lets wait an watch whether 5030-5050 zone to be taken out or not As we could see the divergence in the volume and price which the best thing to look for a change in the trend gave a positive one and any dip till 4870 would be met with lot of buying support. Dollar gave a sharp movement towards 49 levels and it gives some relief for the bulls and VIX reduced by about 10%. As i mentioned in my previous posts options writers who wrote deep out of the money options would have benefited in today's trade as the volatility came down and they could comfortably exit their options with good amount of profit. The slow movers in this market like SBI and l& t can trigger an up move above 1780 and 1410 levels respectively. 5030-5050 - 4900 range is one important range to watch for in the coming days. 12 th October would be one important date to look for as it could form a top around that date . If we look at the larger picture 5th of November would complete one year cycle of bear market and thus the coming days in the month of October could be important dates to watch out.