May 23,2008
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NIFTY OUTLOOK - TECHNICAL ANALYSIS
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S&P NSE NIFTY Closes at 4859.80. BSE SENSEX Closes at 16,275.59.

Lower tops and lower bottoms for the past few trading sessions don't augur well with NIFTY. NIFTY might test 4820 levels. But this is a good buying opportunity for medium to long term investors.

NIFTY is likely to test 5060 levels in medium term. So, a systematic investment plan from this level would yield a good returns for positional traders. Buy in all dips. Sell them all at 5060.

NIFTY might test 5300+ levels within 11 trading sessions, if there is a good momentum.

Similarly, a low below 4720 could be expected if there is a deep correction.

Strength in 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. A low below 5015 could be expected in short to medium term.

4835, 4610 to 4630 act as support levels.

Resistance levels stay near 5200. So, if there is a upward momentum NIFTY might move up with vigor.
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.

Charts of international gold looks good. Gold might test $980 - $1000 per troy ounce in medium to long term.

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