May 20,2008
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NIFTY OUTLOOK - TECHNICAL ANALYSIS
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S&P NSE NIFTY Closes at 5157.7. BSE SENSEX Closes at 17,434.94.

NIFTY moved up as per our expectation. Charts indicate sharp volatility in short term. If NIFTY doesn't test 5077.80, it might move up to test 5240 levels in short term. 5210 levels may be the next crucial resistance level on the upper side. If NIFTY moves up beyond 5274 in today's trade profit booking could be resorted.

NIFTY is likely to test 5300 levels as well. It is a medium to long term target. Similarly, a low below 4720 could be expected if there is a deep correction.

Strength of the charts convince that Indian equity market is still in long term bullish zone. Although, possible corrections are not denied, new bottom below January lows are ruled out.

5077.80, 4990, 4835, 4610 to 4630 act as support levels.

NIFTY is sure to test 6260 and 6345 levels in 6 to 12 months period. So, there is no need to panic. Advise to Long term investors - 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, 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