August 20, 2008

Yesterday was a hammer candle albeit a red one. This indicates a possible reversal in the downtrend that started on the 12th of August. Moving averages however are still negative. We remain with a negative view on the nifty but would like to book profits/maintain strict stop losses. Asian markets are flat this morning and crude is at 115. No real cues.

Trading Strategy: Book profits in any open short positions if such chances come during the day. Close shorts if nifty goes above 4430
Supports: 4346, 4290
Resistances: 4395, 4430