September 19,2008, Nifty

3790 saved the day and we rallied smartly from there. Yesterday was a classic hammer candle, which jumped from a support. This is a strong buy signal. Asia is up, Oil is flat. We should open up a touch.
Trading Strategy: If you had gone long today, wait and watch to book profits. If nifty does not open gap up, go long.
Supports:3900-3919,3799
Resistances: 4085, 4123.
Long term view(3-6 months): We have rallied yesterday and probably will today. We are not done with this down move yet. If 3790 holds over the next few weeks, the bottom will be in place. Gradually start building long term investments as we are reaching the end of the bear phase. There could still be a couple of falls over the next few weeks, but it will be difficult to exactly time the end of the bear phase.