May 6,2008
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NIFTY OUTLOOK - TECHNICAL ANALYSIS
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S&P NSE NIFTY Closes at 5192.25. BSE SENSEX Closes at 17490.90.

NIFTY charts display no trend. NIFTY is likely to test 5300 levels as well. It is a medium to long term target. 5147 will be tested in short to medium term, if there is a significant down trend.

NIFTY charts are looking good. 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.

If NIFTY closes above 5285.10, then NIFTY would display an excellent chart pattern. However, no long position is encouraged for now. If any longs are to be adventured, it should have a strict stop loss. For intraday traders or jobbers anything beyond 5345 could be used to book profits or short.

NIFTY is likely to test 5000 levels and there is a technical confirmation for these levels to be tested. Similarly, in the worst case scenario, NIFTY could test a low below 4710 levels. So, trade cautiously with strict stop loss.

5368 level should be breached convincingly to confirm further bullishness.

5077,4875, 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