Weekly Review - Week ended August 22, 2008

We started shorting the nifty from around 4497. Shorted well through the week, however on Friday we missed the upmove and hit our stop loss... Still, the week overall was profitable.
The nifty looks to be staging a recovery from 4248. We would like to see if this is just a temporary resistance or if we are indeed forming a bottom. The number to watch is the previous low of 4159.
India Vix is at 35, not as bad as last month but still quite high. As we head into expiry on Thursday, markets could swing wildly.