May 15,2007

NIFTY OUTLOOK (Based on TECHNICAL ANALYSIS)
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NIFTY CLOSE 4134.30. SENSEX close13965.86.

As mentioned in yesterday's post NIFTY has tested 4095, 4130 & 4215 in yesterday's upward rally. But only if NIFTY closes above the recent high(4177.85) in short term the bullish momentum would continue.

An intraday high above 4150 is likely. Similarly a likely low below 3982 is inevitable too. 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. This support level remained unbroken on friday.

UPPER BAND-> 4234.8

LOWER BAND-> 3898

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.