May 10,2007

NIFTY OUTLOOK (Based on TECHNICAL ANALYSIS)
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NIFTY CLOSE 4079.30. BSE SENSEX 13781.51.

NIFTY has signalled indecisiveness again. It may be due to FED interest rates announcement. Fed has left interest rates untouched and have not made any hawkish comments. So, it is a positive news for the market, which may help in short term upward momentum.

But the chart pattern doesn't look encouraging. If NIFTY has to move up further and test the recent highs, it has to close at and above 4150.75.

NIFTY likely to test 4217.90. Although, the timeframe to test it might be unpredictable.

When there is a deep correction, an intraday low below 3575 is likely (medium term to long term). NIFTY is likely to test a low below 3800 in the medium term. This doesnot mean that market would turn bearish immediately. However, it does mean that it is the time to book profits.

If there is an upward momentum, book profits systemmatically, whenever the stock price is fully valued. Long term investors should utilise this opportunity.

Immediate support level for NIFTY stays at 3980.65. Immediate resistance stays at
4093.15.


UPPER BAND-> 4256

LOWER BAND-> 3807.95

Note: These views do not have any relevance to NIFTY futures.

STOCKS TO WATCH
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[NO STOCKS]-> As profit booking is recommended for the past few days, short to medium term stock recommendations are not made in this column.