May 11,2007

NIFTY OUTLOOK (Based on TECHNICAL ANALYSIS)
___________________________________________

NIFTY CLOSE 4066.80. BSE SENSEX 13771.23.

As mentioned yesterday, NIFTY's positive momentum was a short lived one. This is because of the chart pattern, which signals weakness. If NIFTY has to move up further and test the recent highs, it has to close at and above 4150.75.

NIFTY likely to move above 4130 & 4215 (inevitable). 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. 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. No immediate resistance.

UPPER BAND-> 4249.65

LOWER BAND-> 3835.60

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

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