August 22,2008

The downtrend that started on 11 August seems to be continuing after consolidating on Wednesday.
Where will the nifty find support to bounce back?
Most of the supports were broken yesterday. 4280 is the 50 day moving average, though it is unlikely to hold. Next support is at 4159.
Oil is at 121.4 and inflation came in at 12.63% yesterday. Looks like it will be a bad day for the nifty.
Trading strategy: Those who took short positions yesterday will have made good profits. Even for those who shorted at the end of the day, profits will be there today. Book profits today as we are heading into a weekend, though we are still negative on the nifty.
Supports: 4280 (unlikely), 4159
Resistances: 4360, 4418