September 2, 2008

Yesterday was another doji, indicating indecision in the market. We expect a break out on the positive side. If nifty breaks out above 4370 this will mean that the down trend is over. However we still need to see if an uptrend will be established or if the market will move sideways from here on. Oil is down to 111.15 and Asian markets are up. We should open in the green.

Trading strategy: If you did not go long yesterday, then take a long position today with stop loss at the supports. Also since tomorrow is a holiday, consider closing positions at today's close.
Supports: 4280-4300, 4255
Resistances: 4365, 4404