June 16,2008
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NIFTY OUTLOOK - TECHNICAL ANALYSIS
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S&P NSE NIFTY Closes at 4517.10. BSE SENSEX Closes at 15,189.62.

After many many sessions,NIFTY charts provide some clues for trend reversal. Provided the good momentum, NIFTY might move up with vigour.

NIFTY might test 4471 level in case of any dip. In the extreme scenario of bearish onslaught,NIFTY could even test 4100 levels - Medium term outlook.

A high above 4739.3 is inevitable in short to medium term.

We reiterate our previous view. NIFTY is likely to test 5060 levels in medium term. So, a systematic investment plan would yield good returns for positional traders. Buy in all dips. Sell them all at 5060.

Buy Ranbaxy in dips. Technical confirmation - Will test Rs.700 +. Time frame - unknown. But it is better to strike, when the iron is hot. This is a long term call.

Liberalization of ECB norms and upside revision of FII limits in Bond market - likely to have a positive impact on Indian markets in medium to long term. This is a fundamental perspective. How far will it have an impact in the present scenario is still a secret.

These measures would improve the Forex inflows, which would help rupee to appreciate, naturally encouraging FIIs to put their money in Indian markets. However, it would affect exporters and IT sector in medium to long term. This is a short sighted measure to improve economy and control inflation.

Resistance levels stay near 4663, 4787, 4982 and 5210.

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, Infosys and TCS have confirmed targets in their chart patterns.
Medium to Long term technical target
INFOSYS - Rs.2290
TCS - Rs.1160
RELIANCE - Rs.2800 to Rs.3000 level

Satyam 540 target - acheived

An interesting quote:
In the middle of difficulty lies opportunity
-- Albert Einstein, Theoretical Physicist