Weekly Review, Week ended September 12, 2008

RIL - Last week RIL broke most supports and closed the week at 1919.7, dangerously close to its year low of 1920. We now see an inflection point for RIL. It will either take support from this point and bounce up, or it will fall through the bottom. The volumes in the last few days has been extremely high,and RIL is now in the oversold region. We feel there is greater chance of a bounce, rather than a fall through the bottom. However we will look for confirmation this week.

Nifty - We were a little surprised by the sharp upmove at the beginning of last week and hit our stops on Tuesday/Wednesday. However near perfect call on Thursday and good trading on Friday meant that we ended the week in the green. Nifty is now close to its next support of 4159. Should this hold we could see a rally, else we may go all the way down to 3800. The news from the weekly charts is not good. Two weeks back we had a doji, and since last week we have seen a negative break out. However we are close to strong supports so wait for confirmation.