April 22,2008
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NIFTY OUTLOOK - TECHNICAL ANALYSIS
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S&P NSE NIFTY Closes at 5037. BSE SENSEX Closes at 16739.33.

"Chart Patterns of NIFTY look excellent. Patterns signal a breakout rally." This is the quote from yesterday's post. NIFTY penetrated important resistance at 5020 as per our expectation. NIFTY has penetrated and closed above an important trend line. Few positive closes from these levels would help NIFTY reach our first target -5200 levels target.

NIFTY is likely to test 5300 levels as well. It is a medium to long term target.

NIFTY has closed above the Psychological 50 day SMA again. 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.

5130 to 5160 level might serve as resistance level. Similarly 4875, 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 targets in their chart patterns.
Medium to Long term technical target
TCS - Rs.1160
RELIANCE - Rs.2800 to Rs.3000 level
SATYAM COMPUTERS- Rs.540