July 31, 2009, Nifty

Nifty made another hammer candle, but with a higher high and a higher low than the previous. This is 4 consecutive signals of indecision. We can now expect major moves over the next few session.
Trading Strategy: Stay short with a stop loss at 4600, but this is risky. If we see a strong move above 4600 we will close and switch to long. For a safer play, long straddle/strangle.
Supports: 442, 4380, 3919
Resistances: 4600, 4650, 4680