September 5, 2008

Market: Nifty broke the first resistance given yesterday, but held above the 4419 mark which we had specified as the second resistance. Nifty closed just above the support at 4446. Nifty looks like it will break a few more supports today, but look for a bounce back. Last night was bad in the US, Asia is down and oil is flat. We will open gap down.
Single Stocks: Right now we only cover RIL. RIL failed to break out of its resistance zone yesterday. It is looking quite weak technically.
Trading Strategy Nifty: If you did not short yesterday, take a short position today with strict stop losses. If nifty closes above 4410 then go long.
Supports: Nifty- 4404-4416, 4372
Resistances: Nifty - 4543, 4649
Trading Strategy Single Stocks: Short RIL with strict stop loss at resistances.
Supports: RIL - 2099, 2052
Resistances: 2161, 2222