February 3, 2010, Nifty

Nifty rose in the first trade, but subsequently failed to go above 4945. Technically our stop loss was hit and we should have switched to long. However in a true sense, Nifty did not really break 4945. Based on Fibonacci retracement of the fall from 5138 to 4807, the Nifty could retrace all the way to 4600.
Trading Strategy: If you are still short, then move stop loss down to to 4894. If you switched to long, then keep stop loss at 4766. If 4766 is broken, switch to short. We will be true to our analysis and be on the long side.
Supports: 4807, 4766, 4539
Resistances: 4945, 5133