Nifty update for 24th Jan 2012

It was a quiet session for Nifty but it held the top of 5060. Though Reliance under performed,
L & T held high and helped Nifty from going down. If nifty is able to cross 5060-5070 levels it is expected to rally till 5130 where the first resistance is placed. On the downside one should be watchful at 4980-90 levels where we have some crucial supports are placed. If Nifty crosses 4980 on the downside it is expected to consolidate around 4840-50 levels and it would confirm the top of 5060.Even if it comes down if it consolidates around 4840 levels we still have a higher bottom , higher top formation.Volatility data shows that there are lot of short positions accumulated on the highs around 5040-50 levels. Thus any upmove above 5060-70 levels could take Nifty to 5130 levels due to short covering.The turnover data shows lack of buying interest on highs , but buy puts only after the high of 5060 is confirmed. As bank nifty was a better performer in the current rally it should lead the the downward move too. Thus for any downward move bank nifty should give the first indication.Lets keep 4980 - 5060 as the range and any break out should give some decent profit in Nifty.