May 14,2007

NIFTY OUTLOOK (Based on TECHNICAL ANALYSIS)
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NIFTY CLOSE 4076.65.

NIFTY's indecisiveness stays. It could not set a trend decisively to move either way. 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 4095, 4130 & 4215 (inevitable). Similarly a likely low below 3982 is inevitable too. Although, the timeframe to test it might be unpredictable.

Econonic data and indicators looks positive. But utmost caution should be exercised.

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. This support level remained unbroken on friday.

UPPER BAND-> 4240

LOWER BAND-> 3866.33

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.