October 21, 2008, Nifty

Yesterday was an inside day on the Nifty. Another trend reversal sign. We have continuously been seeing trend reversal signs, but the Nifty is yet to bounce back. Asia is up, so Nifty should open gap up. If the Nifty is able to hold above 3200, this could be the beginning of a rally.
Trading strategy: Play for supports/resistances breaks or bounces
Supports: 3046, 3000
Resistances: 3200, 3248


We predicted and tracked this October fall from September 26. We are now very close to the bottom. 3046 could be the bottom, though it needs to be tested. A strong up move by the Nifty over the next couple of days will confirm this.