August 26, 2008

Yesterday the Nifty could not break the resistance at 4400 and could not even hold above 4350. Nifty also closed a little below its 5 day moving average. Global cues are weak and Asian markets are down this morning. We should open gap down. Watch for a break out above 4350.

Trading Strategy: Short nifty with stop loss at 4350.
Supports: 4300, 4274
Resistances: 4340-4350, 4400-4420