Nifty update for 14 - Feb - 2012

It was a quiet day for nifty except the result day for SBI.Nifty futures once again failed to cross 5440 levels and closed below that important level.One could see 5500 call were written between 35-45 range and as i said in the previous posts instead of short selling in futures,options are getting written at higher levels.Some of the major large cap stocks are some major resistance zones and lets wait and watch whether these stocks would give a break out or not.We have ICICI bank giving a break out above 950 zone , Reliance above 865-870 levels, HDFC above 703-705 levels.Bank nifty and nifty are almost at par by hitting the major levels on the top for a few days. Thus these stocks should give a really good break out for nifty futures to surpass 5440 levels. We should observe the rates of 35-45 in 5500 call as if it breaks these levels on the upside we could see squaring off of these positions and it would help nifty to go up to 5500 levels.On the downside 5330 would remain as a major level of support and a break below that would confirm the top of 5440. Thus as a trader one should show the patience to see some break down below 5330 before buying put options.Volume and turn over data shows that not many short positions are left in the system except the written calls of 5500, but the volume of equity market was really disappointing. I would like to watch the above mentioned stocks for any break out on the upside or downside.One could see the chart (click on the chart ) that in the previous 3 occasions people tried to catch the top and go short but got stopped out and the shorts got covered , but in today's move the written calls did not get covered (green color) if these calls get squared off it could trigger a move to 5500. On the downside break of 5330 could confirm the move to 5230 levels. Lets keep the range of 5330-5440.