Is a bottom forming now?? July 04, 2008

It was another very profitable day as markets tanked and shorts yielded good profits. But happened was not a gradual sustained selling. It was sell from the word go with very heavy volumes and most of the selling was done in the first 30 mins of trade. In NIFTY fut, 5 min charts, we have 2 possible formations now 1. Descending triangle, 2. Triple bottom. Now both these need confirmation. To start with, upside resistance is at 3930 and downside at 3815 (both future levels). Break of either side, we should see good upmove. So watch for these levels and play accordingly today. We will not play stocks today and concentrate on NIFTY as market needs to first give confirmation of either more down move or an upmove. If NIFTY spot breaks 3800, next major support will be at 3720.