May 23,2007

NIFTY OUTLOOK (Based on TECHNICAL ANALYSIS)
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NIFTY CLOSE 4278.10. SENSEX close 14453.72.

NIFTY has made a new high again.As mentioned yesterday NIFTY made another high. NIFTY has closed above the upperband again.Though the momentum is positive, utmost caution is the need of the hour. Any trading position should have a strict stop loss.

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. Strong support stays near 4050-4100 level.

UPPER BAND-> 4264.50

LOWER BAND-> 4012.

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.