April 21,2008
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NIFTY OUTLOOK - TECHNICAL ANALYSIS
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S&P NSE NIFTY Closes at 4958.40. BSE SENSEX Closes at 16481.20.

Chart Patterns of NIFTY looks excellent. Patterns signal a breakout rally.

It was consistently maintained in this post that NIFTY would test 4970 levels. It was tested on Friday. IF NIFTY crosses 5020 intraday, it may gain further momentum.

Let us wait and watch NIFTY to test 5200 levels in short to medium term. Two indicators confirm this.

NIFTY has closed above the Psychological 50 day SMA. It is a good sign. On the negative side, NIFTY may suffer a huge loss,if there is a negative news or momentum. A low below 4710 is possible in short to medium term, if there is any negative trigger.

5010 to 5020 levels might act as resistance level. Similarly 4610 to 4630 act as support level.

NIFTY is sure to test 6260 and 6345 levels in 6 to 12 months period. So, there is no need to panic. Patience should be maintained at least until 6250 is tested.

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

Stocks to Watch
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RELIANCE, CNX IT,SATYAM and TCS have confirmed breakout in their chart patterns.
Short to Medium term technical target
TCS - Rs.1160
RELIANCE - Rs.2800 to Rs.3000 level
SATYAM COMPUTERS- Rs.540

If INFOSYS & WIPRO closes up with decent volume, they would confirm break out as well.