NIFTY Updates..Aug 29, 2008

Expiry of August closed at month's low with decent rollovers. NIFTY sep is trading at a premium. However, the overall trend is down. Market is unable to decisively break 4400 levels for sometime now. This will be a stoploss (closing basis) for all shorts. Though market is looking weak, the stochastics indicate a slightly oversold condition on daily charts. Though, this doesn't mean market cant go down any further, its a signal to be cautious on shorts as well. I am sure you must be confused at this post today, one on hand I say its weak, stay short and other hand I say stochastics are oversold so careful in shorts. Well thats how its playing out now. Its dicey. 4200 - 4150 levels needs to be broken decisively for shorts to party. Till then hold shorts patiently, I think we will break down if not today at least next week. (Keep stoploss intact).