Jan 7,2008
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NIFTY OUTLOOK - TECHNICAL ANALYSIS
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NIFTY Closes at 6274.30. SENSEX Closes at 20,300.71.

"NIFTY is likely to test 6200 levels in short to medium test." This is a quote from previous post, last week. As mentioned NIFTY has tested 6200 levels. Still we expect it to close or test upper band, which is yet to happen. Have a close watch on upper band.

An intraday low below 6022 is inevitable. But the time factor is unpredictable.

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

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 -> 6324.

Lower band -> 5710.


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

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