Nifty update for 4th November 2011

It broke 5250 levels and got support near 5220 levels.The volume data shows that it was due to short covering and buying emerged is some stocks like RIL and SBI. One important thing that happened in today's trade would be the break out that happened in SBI, RIL and JSW steel on the upside. If these stocks could lead nifty on the front some more upside would be left in Nifty before fresh short positions coming up. If we look at the chart of Nifty futures it is evident that short positions started accumulating from 5320-5330 zones and a move above these levels would cover all the short positions at that level. On the upside i would like to take a long position only up to 5420 levels. As i said yesterday instead of playing nifty futures it would be better to go for near out of the money calls as volatility is in your favor and take out your profits daily.
It could most probably attempt for one more top and in a larger time frame it seems to be topping out around 5420-5470 levels . It is advisable to reduce your equity long positions at these levels.