Nifty update for 18 th November 2011

It was a crash all over and it took out our support zone of 4970 - 5000 and gave some good points on intra day.As of now it would extend downward move till 4700. Nifty did not even show the courage to cross 5100 and thus the weakness is evident. Stocks like l& t and PNB which are registering 52 week lows every day worsen the situation. The way it crashed the psychological support level of 5000 tells you how weak the system is. I expect any relevant bounce back during 21-26 as i said in my previous posts. Volumes in nifty futures would tell you that there are not many buyers left in the market. Reduction in cost of carry with implied volatility surging indicates a much deeper cut and be cautious to play any play long positions for a bounce. If it comes below 4900 square off all the short positions close to 4750-4800 and a bounce is expected close to 4700 levels.