For 26 May 2009

Y'day trend changed as higher high and higher low.....I will not change my bearish approach because of this only indication..but will keep in mind this changing pattern......still I think 4310 (+- 20 points) is very tough to sustain....and difficult to cross and sustain 4510 in near term.......
For today i think 4254 is vry important level to watch out.... more i will say if today again nifty breaks 4270 intraday and protects 4205 also then expiry might be 4310++....but this is to keep in mind only ..means not to take positional trade accordingly....few heavy weights are loosing strength or preparing to run up new rally?? we will get answer of this question in 2/3 sessions...then the next move will be discussed....
Today if negative opening ....near y'days close(4235/4230) I will say go short with sl 4255..( for aggressive it will be 4275) ...first tgt will be 4205/lower.....(here @ 4230 will get bounce also..so think to follow shorting strategy...one may think to go long also with sl 4220..id depends on opening momentum...) 4238 is the point to be watched....if sustains then wait for half an hour to get clear signal.....if 4238 sustain then go long with sl 4220...tgt will be 4275/4290...at this stage (15 points + -) go short with sl 4310.....for first tgt of 4238 and then 4220 or even lower than that.... if there get a chance to short @ 4290 level ( few points + -) and today's close is below 4254 then carry shorts for more gains quickly in tommorrows opening......even one may think to square off those shorts near 4155 level... but for that we have to see tommorrows range....this strategy is not that much risky if you are not trading in options...cause final sl for shorts is 4320 on closing basis...if today not crossed 4270 and close below 4254 then also one may think to carry shorts.....but to follow this one has to be very smart to get the point to short....( that point might be near 4260/4265.) but it is risky cause after that nifty may cross 4270 and go higher.....
nifty is in very narrow range so practical trading is difficult on prdefined strategy. at least for today....so to get right trading direction @ 4230/4240 level is very important to begin the day....
For today support for nifty is @ 4220/4205/4195/4155....resistance @ 4254/4270/4290/4310.....
Good luck!