June 2,2008
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NIFTY OUTLOOK - TECHNICAL ANALYSIS
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S&P NSE NIFTY Closes at 4870.10. BSE SENSEX Closes at 16,415.57.

Market is yet to set a clear trend. It seems markets are waiting for a trigger to set a new trend. Petro prices seem to be the trigger awaited but it has been postponed for another week.

Liberalization of ECB norms and Bond market upside revision of limits likely to have a positive impact for 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.

A high above 4957.4 or a low below 4801.90 is likely to be technical trigger for a new trend. Wait and watch until anything happens.

Avoid fresh longs - short term traders. Else - strict stop loss.

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

NIFTY might test 5300+ levels within 9 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.

4610 to 4630 act as support levels.

Resistance levels stay near 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.

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, 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 COMPUTERS- Rs.540