As we predicted, yesterday the nifty broke the support of 4400. However nifty did not go much below that. The nifty is now below its 20-day moving average. While we are still negative on the nifty, the strength of the support and the fact that nifty has not fallen after breaking the support, means that we could see a pull back from here. Oil is at 112.25 but asian markets are weak. We might see a gap up opening with market coming down later in the day.
Trading strategy: (Assuming you already went short yesterday). Wait till the end of the day. If nifty closes above 4425 then close the short (and book losses). Else continue to stay short. During day stop loss should be 4453.
Supports: 4346, 4289
Resistances: 4420-4425, 4453
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