Nifty update for 28th October

It was a good expiry in favor of bulls and it crossed an important resistance level at 5180. Though it did not give a closing above 5200 levels it seems like all set for further upmove till 5330 levels. PSU banking space still remains a worry and nifty could sustain the uptrend and above 5200 levels on Nifty it could be extended to 5330 levels. It is difficult for this up move to sustain without banking sector above certain levels. Apart from banking all the stocks were very supportive in today's upmove. Equity market turn over shows that buying emerged at all dips and many mid cap stocks including YES bank (one of the best banks in India with an incredible business model) supported the rally. India VIX has come down by 11% and option buyers have an upper hand than writers as option premiums have become cheaper. As we are close to the cycle anniversary of a bear market on the first week of November it is very important to move ahead of 5200 to prove that the long term bear market is close to bottoming out at least in the short term. A closing above 5200 can drive Nifty to 5330 and if it happens the new range would be 5080 - 5350 . Happy Diwali!!!