September 1, 2008

On Friday, Nifty went up almost 150 points. With this intermediate downtrend (which began on August 12) has been challenged but not fully broken. For investors watch the next day or two before going long. For traders we need to look for signals which will confirm the end of the downtrend and the starting of an uptrend. Asian markets are weak we should open down.

Trading Strategy: After the opening see if the Nifty holds above supports. If it does then go long.
Supports: 4300-4310, 4253
Resistances: 4364, 4425-4434