May 24,2007

NIFTY OUTLOOK (Based on TECHNICAL ANALYSIS)
___________________________________________

NIFTY CLOSE 4246.20. SENSEX close 14363.26.

NIFTY has made another new intraday high again. But some sell off, to book profits after a rally, has taken place. NIFTY has closed below the upperband. If it has closed above upper band, the uptrend might stay intact. Though the momentum is positive, utmost caution is the need of the hour. Any trading position should have a strict stop loss. If NIFTY closes below 4178, the strength of the rally might weaken.

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-> 4278.

LOWER BAND-> 4012.

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.