June 14, 07

NIFTY OUTLOOK - TECHNICAL ANALYSIS
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NIFTY closes at 4113.05. SENSEX closes at 14003.03.

Nifty could not set any trend in yesterday's trading session. It has to move above 4166.85 or move below 4100.80 in order to indicate any possible future trends. But it stays indecisive for the past two days. Although NIFTY tested the lower band in the past two days, it stayed above it in the closing. NIFTY has a strong support in the 4050-4100 region. It prevents it from deep correction for the moment. Possibility of bounce back from these levels or little bit down cannot be ruled out.

An intraday high above 4170 is inevitable, although the time of occurence could not be predicted.

It is consistently mentioned about the possible lows in this page - "possible lows below 4145, 3985 and 3800 are inevitable." As per our view NIFTY has tested 4145. Expect the rest of the lows to be tested. The time frame for it to take place is unpredictable.

Similarly, another new high on intraday basis above the ever high 4362.95 is inevitable too with an unpredictable time frame.

Markets likely to face lower liquidity after public offers of DLF, ICICI BANK, etc.,. Since these issues are larger issues they may suck some liquidity out of the market, which may affect the further up move in the NIFTY after few weeks.

Upper band -> 4337.41

Lower band -> 4112.47

Lower band and 50 day sma at 4092.06 might act as a support. But if there is a bearish onslaught, these support levels might not withstand.

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

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