Nifty update for 02 - Feb - 2012

The rally got extended to 5270 zone and the day saw some good amount of long build up in many sectors.We are close to the short term target of 5290-5300 zone and it could extend upto 5325-30 levels. I would like to exit my longs close to 5290-5300 levels and wait for a correction for any more buying positions. We did see good rally in the mentioned stocks like Jindal steel, Bhushan steel and SAIL.Though i would like to exit the market even at today's levels i would not be in a hurry to buy puts.It is really good to see a decent rally after a long time and we could hardly find major stocks not participating in this rally except Gail and M&M.As i said in the previous posts bank nifty has to get out from 9900-10000 zone for further upmove and it would be considered as a new leg of a bull market.The turnover data was also supporting the upmove as we saw an exceptional volume in the equity segment with good advance/decline numbers.The only worry would be the premium rising to 30-35 levels.If we analyse the previous data we could see that Nifty topped out when ever it traded with the maximum premium of 30-35 points.I was focusing on 5170 on Nifty futures as lot of short positions got covered and buyers are getting added in that region, thus it would act as the immediate support zone.One can exit the long positions either at 5290-5300 levels or at the breach of 5170 on the downside.Thus stay with the trend and don't over trade or go short in the market unless there is any particular reason.The days range would be 5170-5330.