Nifty update for 11- Jan- 2012

Finally Nifty broke out from the range bound trade and closed above the break out level of 4840.As mentioned in yesterday's post two stocks were not ready to move and finally it gave a break out from the tight range and those are l&t and SBI.Bank Nifty gave a break out above 8500 levels and it gave us 250+ points on the break out trade.Thus buy the first dip and we have our first resistance levels close to 4930 - 50 levels. The turn over data was on the rise and Volatility levels are showing buying emerging on every dip.Though SBI gave a 4% upward move it has to participate in this rally in a much meaningful way at least giving levels of 1750-1760 levels.Now we have a base formation pattern where is floor is placed at 4690-4700 levels.We had a date for the top on January 9th but it did not form a top and broke the resistance levels, thus we have dates for the top only after a few days.As i said in the previous posts i would not be in a hurry to go short in a rising market, thus let it give a rally , give a profit booking session and have a secondary rally to confirm the top.Lets keep the new range as 4770-4930.