September 16, 2008, Nifty

We were safe in waiting for which side the break out would happen. We lost out on a money making opportunity but we saved our capital. Asia is down and so is oil. We should open down a little. The big number to look for is 3790. Will Nifty hold previous lows and confirm that the bottom is forming or will it fall through again.

Trading strategy: If we do not open gap down go short, else look for break/bounce from supports.
Supports: 3848, 3790
Resistances: 4118, 4145

Long Term(months):From a look at this year's charts we are in the third big move down. This should be the last big down move for this year. From the low point of the end of this move we should start going up. Wait for the end of this move and then take long positions with a time-horizon of 3-6 months.