September 4, 2008

Nifty rallied more than 3% on Tuesday. Those who took my advice and went long made huge amounts of money.
The downtrend has clearly been broken, however to establish a clear uptrend is going to be difficult for the nifty after such a strong rally in a single day. We need to see more sustained moves before we can be sure. Till then play for small gains and keep strict stop losses. Asian markets are down and oil is up. We should open a touch down.
Trading Strategy: Look to see if supports hold, if they do not then go short with a strict stop loss.
Supports: 4446, 4419
Resistances: 4544, 4649,