Dec 08,06
NIFTY OUTLOOK - TECHNICAL ANALYSIS
___________________________________

NIFTY has signalled indecisiveness again. 4040/3977.60 can be expected in the short term. However a move above 4036.20 or a move below 3982.50 would ensure the next upward/ downward trend.

As mentioned earlier NIFTY has tested 3975 and reached a new high. But it has not tested the low of 3911.55. It is sure to occur but the time frame could not be ensured.

Immediate support lies at 3952.30 & 3907.3. If initial support is tested immediately, then 4040 may not be tested in short term.

CAUTION:
Indian Finance Ministry has asked (Mauritius Government)for the sources of funds that had flown into the Indian stock markets, from Mauritius. It may have negative impact on the markets, in short to medium term, as it may prompt some funds to withdraw funds. So trade with strict stop losses.

NIFTY has to correct considerably in order to maintain healthy momentum. But such a correction is not in the offing(short term).

3790 in the lower side is possible(medium term).

WARNING : TRADE WITH STRICT STOP LOSSES. NIFTY HAS SURGED MORE THAN 50% WITHOUT A SIGNIFICANT CORRECTION (2600 TO 4000).

Today's upper band lies at 4056.60. Today's lower band lies at 3791.60

Support Levels:
3899
3839.1
3712.60
3671.86
3597.93

Note: These views do not have any relevance to NIFTY futures.

Stocks to Watch(SHORT TO MEDIUM TERM)

NO STOCKS