Nifty update for 21st December 2011

Nifty tried its best for a pullback but could not sustain at higher levels .As said in the previous post it was a clear sell on rise market and Nifty futures held our lower range of 4530.Futures volume charts are showing positive divergence for a pull back but biggies like l&t,SBI,Reliance are making new lows everyday . Thus these stocks should stop falling for a meaningful pullback rally.We had a selling in the last hour but it was not with enough volume but large cap stocks were really disappointing.After 4530 the next stop for Nifty would be close to 4480 levels. Thus lets keep the new range as 4480-4640.I think 4640 is a crucial level as buyers got stopped out around that level and Nifty took a 'U' turn from that level. Thus on the next rise towards 4640 Nifty could possibly break the upside range for a good pull back rally.We had our previous 52 week low around 4630-40 zone and lot of short positions are accumulated over there. Thus the area is of significant importance for any move.Volatility was still on the rise indicating short positions are not yet covered fully.One major worry for bulls is the way heavy weights are registering new lows.It indicates Nifty needs good consolidation period to build a base for the broken down structures.If world markets closes on a positive note Indian markets could do well but 4640-50 levels would be important levels to watch out for and 21st December would be an important date for Nifty.