August 3, 2009, Nifty

Nifty seemed to break out on the upside. However the recent high of 4693 was not breached. We will stay long on a straddle/strangle as we expect a major move in the Nifty in the next few trading sessions. It now looks like the move will be on the upside.
Trading Strategy: Switch to long if you did not on Friday. Stop loss should be 4421. For a safer play, long straddle/strangle.
Supports: 4421, 4380, 3919
Resistances: 4693, 4746