Nifty update for 20th October 2011

It was a smart rally from yesterday's lows. It held 5120 levels for sometime and finally the shorts of those levels were also got covered and gave an intraday buy till 5150. Still 5180-5200 remains a hurdle and if nifty gives a closing above these levels then only it could be a trend changing move on the upside at least in the medium term. All the major large cap stocks participated in the rally , India VIX came down by 7%, volumes in nifty futures were good enough and all these things are good signs for traders who are bullish. As i said in my earlier posts i would be still be a buyer on dips and on the upside only above 5180 - 5200 levels. Till today's closing all is well for Nifty on the upside and the only hurdle left is the price resistance at 5180-5200 levels. Option traders could concentrate more on buying options now as the volatility has come down drastically and option prices would be cheaper.Institutional data in the cash market is still surprising as both FII's and DII's are remaining as net sellers. We are getting closer to the end of one bear market cycle on the first week of November and that would be one important week to watch out for the shorter term 2Oth October would be an important day as a trend deciding day (after 12th of October 20th Oct would decide an important change in the short term trend)