May 21,2007

NIFTY OUTLOOK (Based on TECHNICAL ANALYSIS)
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NIFTY CLOSE 4260.90. SENSEX close 14418.60.

NIFTY has made all time highs alas! Yesterday's momentum implies another intraday high above the new high(4269.35) in a future trading day. It needs not take place today itself.

Chart pattern is excellent for an upward momentum. But trade with caution. NIFTY has closed above the upperband. Any position should have strict stop loss in the days to come.

NIFTY has an upper target above 4415. But the timeframe for the target to be achieved is unpredictable.

A likely low below 3982 is inevitable. Although, the timeframe to test it might be unpredictable. NIFTY is likely to test a low below 3800 in the medium term.

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 4206.65. No immediate resistance.

UPPER BAND-> 4248.40

LOWER BAND-> 4001.54

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.