MARKET CAN TRADE IN RANGE “BEFORE BRK’S LOW”

The market entered the current week on dismal note and remained very volatile in the initial days giving no respite for traders and writers. The current rally from 4720 to 5170 has seen retracement, which forced the Nifty to trade below its intermediate support of 5000, but well above its Volume Weightage Average Price for the September series. On the other hand, Implied Volatility has seen a sudden spurt due to the RBI’s Monetary Policy scheduled this week on September 16, 2011, suggesting the market will remain very volatile with high intra-day whipsaws unless VIX doesn’t cool off significantly.
The Nifty has closed & sustained well above 4930 The market will trade in a range before taking any clear view. Trend reversal can be pegged only below a close of 4700 or above a close of 5200 until that bias is sideways