NOV.21,2007
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NIFTY OUTLOOK - TECHNICAL ANALYSIS
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NIFTY Closes at 5561.05.

Sorry, we couldn't post for few days and there was no clear cut trend emerging in the past few days.

But NIFTY has confirmed a trend yesterday and a close below yesterday's close appears inevitable. Chart pattern suggests bearish trend.

However, there is a technical confirmation for the recent high of 5981.8 getting tested.

NIFTY is near lower band, which is likely to be tested. A close below lower band in near to medium term could be expected. So, have a close watch on lower band regularly.

As mentioned in previous posts, NIFTY is likely to test a low below 4446 and 4453 in medium to long term.

Support is at 5380. It stays unbroken. Resistance is at 5820.10.

Rupees appreciation against dollar is a dangerous proposition for Indian Economy in long term. It might prevent and discourage new investments in Export oriented industries, Textiles, IT, Pharma, SMEs supplying raw materials, SEZs, etc., which have a major contribution in Indian Growth story, might not have encouraging growth and end up in economic slowdown. If IT industry gets affected, spending could deplete and affect Real Estate firms, Banking, Consumer Durables,etc. Moreover, there is a chance of huge trade deficits and current account deficits, which could encourage FII outflows, which might affect markets.

Upper band -> 6054.15.

Lower band -> 5501.90.


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

Stocks to Watch
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