Nifty update for 06-Jan-2012

It was again a quiet day for nifty with some major moves especially in Reliance. It ended below 700 levels and it should hold the 52 week low zone for Nifty to break out on the upside. It is a tight range bound market with a 100 points range and a break out on either side should be considered as valid.As i said in the previous post banks should hold for nifty to break out with a positive bias.Thus bank nifty would be leading but it has to first cross the price hurdles around 8500 levels by giving a closing above that.As said in the previous post cement and some of the auto sector stocks are giving exit signals and investors should exit from these stocks.Short term bounce back rallies should be considered as opportunities to exit.Volatility data shows some buying happening at lower levels but stocks are seeing serious profit booking. Thus it would be a little difficult for futures traders to be in the market.As per time cycle if we have a top it should be formed around 9th of January.Turnover data is showing a steady increase but with a profit booking session in bigger names like Reliance is really a concern. Thus keep a cushion of 4700 for any long positions. As of now there are not many short positions but short positions might get created below 4700. The range would still remain as 4690-4840.I would like to create a buy or sell position only on the break out of the 100 points range of 4700-4800.