Nifty update for 30th November 2011

All major indices rallied more than 2% and that was one of the best short covering rallies in the recent history , but our Indian markets could not repeat the up move.As said one should not hold any futures positions as it would be range bound market with a negative bias.Dollar index is at a crucial level close to 80 and as long as it does not cross 80 levels Nifty could be saved. It does not look weak at all ,may be before crossing 80 on the upside it might be getting ready with some more long positions.Call options should be bought only on dips and 4690-80 levels could offer some support. Volume in nifty futures is telling that lot of profit booking is happening at higher levels. Today's move could not have initiated many shorts but i would call it as a profit booking session and VIX data is one evidence for that.If Nifty could get supported at the lower end of 4700 levels it can still stretch up for a top. Though Nifty did not initiate many short positions weakness in major heavy weights were evident. As i said in my last weekly post pharma sector was the most out performing sector.Long positions should be taken only on intra day basis if it is forming some support region at 4700 levels.4860-4880 is still a major hurdle and on the upside it could be stretched maximum upto 4940 levels.We formed a low of 4690 just before that big rally and that would be the good support region for the market.For bulls it is a major worry that long positions are not getting created in heavy weights and just short covering rallies are happening.