Nifty update for 13th October 2011

It was a good rally above 5050 levels, short covering and heavy buying in large caps helped nifty to touch 5100+ levels. 12th of October would be a crucial day as it could be a day for the top. Nifty looks strong and last 2 hours of trading shows the amount of volume in the cash market. I would wait for 5200 to be taken out and i wouldn't like to play that 50-60 points up move from here.Nifty doesn't look weak in the charts and it has the capability to touch 5180-5200 levels , but i would like to respect the resistance at 5200 and wait till that level to be taken out. As indicated in my weekly post Nifty had completed 90 days from it from its major top in the last week of October and there we had a trend reversal and it could extend upto 5180-5200 levels. I suspect any buying triggers above 5200 and expect the cycle of 4700 upmove to be over by 5180-5200. Nifty just went crazy and the beaten down stocks had a major rally like l& t and SBI (see the post of 11th OCTOBER) , but the turnover data suggests that institutional participation is still lower and retailers have become very active in the equity segment. Cooling of VIX and dollar making its top are very good signals for a bullish trend and the only thing that is still fishy is the lack of institutional participation.One fact is very clear that ever dip would be used as a buying opportunity and 4900 would be the base for the market if it takes out 5200 and it would trigger a rally to 5350 levels where the next trend line resistance could be found. As a nifty trader who is on the buying side i would just write deep out of the money calls near 5180 and add my next buying position only above 5200 levels