Nifty update for 01- Feb- 2012

Nifty broke the immediate resistance of 5170 and gave about 50 points above that level.Thus 5100 would be the new support for traders who are long as the short positions got covered above 5190.Nifty futures made a new high above 5220 and it is to be considered as a valid break out on the upside.Bank Nifty also made a new high and it is confirming the upmove.Short covering in Bank nifty and a spectacular rally by ICICI bank helped nifty to reach new highs.On the upside the crucial levels would be around 5290-5300 and lot of new buyers got added above 5170 levels. As lot of buy on dips happened yesterday and short covering above 5170 would make it a strong move on the upside.Bank nifty above 10000 would give us a new range on the upside buying in smaller banks like IDBI (above 103)would be a good idea on the long side.On the metals front Jindal steel (above 550) and Bhushan steel looks strong.Institutional buyers are continuing their journey on the long side and investors are advised to stay with their current buying positions.Turnover and volatility data shows lot of short covering happened above 5170 and buyers got added above the mentioned level.Investors could use this time to concentrate on smaller stocks like IDBI bank and SAIL as longer term bets.The new range would be 5100 - 5290.