Aug 5,2008
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NIFTY closes at 4395.35. Sensex closes at 14577.87.

Crude tests $120. It is a good news. Crude may slide down further. If this helps sentimentally, NIFTY would close above 4500 as said earlier. It is a medium term target. But before that NIFTY should breach the resistance lies around 4453 to 4463.

If there is any bearishness NIFTY would test 4240 levels in medium term. Similarly, NIFTY might test 4100 if there is any bearish onslaught.

NIFTY might test 4600+ levels in medium term,if there is a good momentum.

Crude's correction augurs well. Outstanding crude oil futures contact numbers fell to the lowest in 17 months in New York, as the Senate began considering legislation to limit speculation in oil markets. This is a good news.

According to fundamental analysis, excluding the effect of speculation, oil should be around $80 per barrel. Crude oil would plunge steeply if it closes below $120 in New York, as per technical analysis. Else it may rebound with venom.