September 26, 2008, Nifty

As expected Nifty was volatile with a 130 point difference between high and low. Nifty went below its 5-SMA yesterday. We will wait for confirmation of that sell-signal today, since yesterday was expiry and so price action was not reliable. Also now Nifty is below 5-SMA which is below 20-SMA which is below 50-SMA. This indicates an extremely bearish mood in the market. October could see a major fall.
Asia flat, and so is oil. We should have a muted opening.

Trading Strategy: Go short with a stop loss at 4180
Supports:4051, 3919
Resistances: 4160-80, 4260-70