Nifty update for 12 - Jan - 2012

It was a quiet session except some stock specific up moves. The turnover data is comparatively low and volatility is giving an uptick.This could be considered as a profit booking session and short selling at higher levels.One can maintain the short term bullish setup till 4930-50 levels.Even if there is a dip to 4800 levels that would be met with buying and no need to misjudge it as a short selling idea.As we have Bank nifty as the leading index we could see some of the major banking stocks hitting some important resistance levels. We could see ICICI bank facing some major resistance levels at 790-800 levels and from a trading perspective i would be booking profit at these levels and would look for an entry from a lower level.As the cost of carry is increasing only at a nominal rate it would be an indication that traders would like to buy on dips and not the highs.This kind of situation happens when Nifty is moving up by buyers and not by short covering.Lets keep the same range of 4770-4930.