NIFTY AS ON 27/08/2010

As said nifty can correct upto 5420 levels in the prevous week below 5500 it was short with sl of 5520 and nifty made low of  5391
Now nifty had taken support at its 50 day moving average still the trend remains up as its next immediate support comes at 5360 levels only a close below can confirm downtrend for 300 - 400 pts on nifty till than nifty remains up but as nifty had given close below 5440 levels which was very important support was broken decessively with volumes its seems that nifty has become week and close above 5490 levels only could take nifty higher till then it is advised to sell on rise
levels for the week are
trading range of nifty shall be
5450 - 5612
short below 5490 levels with  stoploss  as 5500
long above 5500 for target of 5570 - 5612
also all the indicators are showing negative divergence but still a bounce upto 5450 - 5485 is possible due to positive globle cues. And if nifty closes below 5350 exit all long positions and remain short only.