Nifty update for 03-Jan-2012

We had a quiet session with lower volumes but nifty could see some serious short covering activity below 4600 levels.Some major stock specific moves are happening in many counters like JSW steel and Bajaj auto.It was another low volume day and Reliance is leading the short covering rally. Though Reliance has covered some shorts it is still the weakest among the pack.If there is any stock to be played on the upside it should be SBI. Above 1635-40 levels it could give a rally of 50-60 points, but first it should cross these major hurdles.As far as Nifty futures is concerned our upside range of 4730 would still act as a major reversal point on the upside.Turnover and volatility data are indicating short covering activity in the market. As long as it is not a long accumulation the there should not be any case for a bullish reversal.Thus we can still keep 4530-4730 as the range for Nifty.Dollar index is still trading around 80 levels would be a major threat for any rally.