September 9, 2008, Nifty

Nifty rallied smartly yesterday. We did not expect such a strong move. Nifty is now above its 5 SMA and also 5 SMA has gone above 20 SMA. These are both buy signals, but we would like to ignore moving averages, when there are sharp moves. We are seeing an uptrend set in and would like to see if that can be confirmed today. Asia is down, but so is oil. We expect a minor pull back today.
Trading strategy: If nifty goes below 4440 go short. Close position and go long at end of day if nifty is above 4450.
Supports: 4440-47, 4399
Resistances: 4533-4558, 4649