Nifty update for 5th Jan -2012

We had a quite session in Nifty with a favorable advance/decline ratio on the bullish. As said in the previous post ICICI made a decent intra day move of about 3% from our buying level.Though Nifty is still holding some important levels Reliance is still a disappointment in this current bear market rally.It is still the weakest among the biggies.It is better for investors to exit counters like ACC (below 1000), Ultra tech cement and auto biggies like M & M and Bajaj Auto. Though HUL is an out performer don't create any buy positions if it cracks below 395.We still have our upper levels placed around 4850 levels as long as it holds the low of 4700 on the downside. Banking is one sector that should hold up for the rally to continue.Thus before going short Nifty should confirm a low below 4700 to tell you that it was a false rally. We still have some more upside left but as a buyer you have two levels to watch out for.One would be below 4700 as one should square off their long positions at that level and at 4640 levels we need to watch out for a new buying level.On the upside if it crosses today's high wait for 4840 to square off the long's.Investors should exit cement stocks like ACC (below 1000) and Ultra tech cement.We had a good turn over compared to yesterday and it reveals that people are booking profits much before any resistance levels in Nifty. Thus if it is a consolidation phase with a floor of 4640 it is well and good for the bulls.Lets keep 4690-4840 as the range.