Aug 6,2008
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NIFTY closes at 4517.55. Sensex closes at 15073.54.

NIFTY has met all the targets mentioned here. A close above 4500 plus and intraday high above 4600 were our targets. Both the targets were achieved in the last two sessions.

Today's session might be a trend setting session. It would be better to avoid trading. Chart pattern looks good. But it should be supported by the sessions to come. Bullish momentum would help NIFTY to test 4630+ in short term. 5200+ would be the next upside target. This is a medium to long term target, provided the bullish momentum prevails.

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

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.