Nifty update for 15th Feb 2012

Nifty futures gave an interesting close above the mentioned levels of 5440. Though some of the major large cap stocks like HDFC, Reliance and ICICI did not break out from the major resistance zones buying in TATA motors , SBI and l&t helped nifty to catch an important level.On the way ahead we should have a careful look at the mentioned price levels of 5500 call ie; between 35-45.Thus above 5440 in nifty futures one can buy near out of the money call of 5500 and above 5440 nifty futures is expected to trade higher till 5500-5510 range.As we had a good consolidation period for a week after 5th of Feb it is good to respect that consolidation period and it never took out our support zone of 5330.A good consolidation period would help Nifty to balance with the time factor and give a break out.A false break out would be seen if the mentioned stocks like ICICI, HDFC and Reliance not breaking out with Nifty.Thus traders could watch these stocks and near out of the money calls for confirmation of any upmove.I expect a decent correction and not a consolidation this time , of 200-300 points and a secondary rally would be seen after that. Possible dates for a major top would be 18th-22nd of March and second week of April 2012.On the downside one should watch out for 5380-5370 to square off all long positions.Thus let's keep the range of 5370-5500.