May 28,2007

NIFTY OUTLOOK (Based on TECHNICAL ANALYSIS)
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NIFTY CLOSE 4248.10. SENSEX close 14338.40.

NIFTY bounced back exactly near crucial trend line support level on friday. Closing just above sma is a sigh of relief.

An intraday high above 4261 is inevitable, although the time frame for it to occur is unpredictable asusual. Or it may even take place today itself.

Liquidity might get sucked out of the markets, after the two large public offerings - DLF and ICICI bank. It could affect the bull rally to some extent. This is a note of caution for long term investors.

Any trading position should have a strict stop loss. If NIFTY closes below 4178, the strength of the rally might weaken.

NIFTY has an upper target above 4415. But the timeframe for the target to be achieved is unpredictable.

A likely low below 3982 is inevitable. Although, the timeframe to test it might be unpredictable. NIFTY is likely to test a low below 3800 in the medium term.

If there is an upward momentum, book profits systemmatically, whenever the stock price is fully valued. Long term investors should utilise this opportunity.

Immediate support level for NIFTY stays at 4050.80. No immediate resistance. Strong support stays near 4050-4100 level.

UPPER BAND-> 4294.50.

LOWER BAND-> 4019.20.

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

STOCKS TO WATCH
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[NO STOCKS]-> As profit booking is recommended for the past few days, short to medium term stock recommendations are not made in this column.