June 6,2008
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NIFTY OUTLOOK - TECHNICAL ANALYSIS
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S&P NSE NIFTY Closes at 4676.95. BSE SENSEX Closes at 15,769.72.

Nothing significant has happened. Yesterday's rally was just a pullback because of too many shorts built up. Market is oversold. So, the market had a small rally yesterday. Atleast a high above 4739.3 is required for further upward momentum. Still January low (4430 to 4500 level) stays as the only support level left.

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.

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.

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