Aug 21,2007

NIFTY OUTLOOK - TECHNICAL ANALYSIS
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NIFTY closes at 4209.05. Sensex Closes at 14427.55.

NIFTY likely to move up in tune with the US and Asian markets. However trade cautiously with strict stop losses. Friday's fall has signalled another low below the friday's low of 4002, which need not happen immediately. Another plunge requires some negative trigger.

It is better to concentrate on individual stock picks looking at the valuations. NIFTY has bounced back exactly from the crucial support levels.

But buyers should stay cautious as the political musings might have some repercussions on NIFTY.

Sharp volatality in the market could be expected.Resistance stays at 4372.95. support is near 4093.75.

An intraday high above 4534 is inevitable in medium term to long term.

Liquidity would be the dictating factor in the days to come. 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 in some future date. The time frame for it to take place is unpredictable.

Upper band -> 4701.

Lower band -> 4124.20.

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

Stocks to Watch
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[NO STOCKS]-> As we advised profit booking for many weeks, no buy calls were mentioned here for many posts. We maintain the Status quo.