June 18,2008
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NIFTY OUTLOOK - TECHNICAL ANALYSIS
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S&P NSE NIFTY Closes at 4653. BSE SENSEX Closes at 15,696.90.

"If there is a good momentum, NIFTY could test the resistance zone at 4660 to 4680 in short term" - A quote from yesterday's post. NIFTY tested a high of 4664.05 yesterday. So, 4680 levels would be tested sooner or later.

Provided further momentum, NIFTY might test 4740 to 4750 level. It is the level at which profit booking could be resorted. World markets and macro economic factors have more influence than the technicals in the present market scenario. so trade cautiously.

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.

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.

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

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.

Support level 4527.

Resistance levels stay near 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