August 29, 2008

Nifty fell sharply yesterday after breaking the support zone. While technically nifty is quite weak, we would not want to read too much into yesterday's price action as it was f&o expiry, and in my experience signals from such days are best ignored. Global cues are strong. Asia is up and oil is flat. We should open up.
Trading strategy: If you are still short, stop loss at the resistances. Else look to initiate long positions in case of a strong positive break out.
Supports: 4159, 3848
Resistances: 4255, 4290-4310