May 29,2007

NIFTY OUTLOOK (Based on TECHNICAL ANALYSIS)
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NIFTY CLOSE 4256.55. SENSEX close 14397.89.

As mentioned yesterday (An intraday high above 4261 is inevitable), NIFTY surpassed the level mentioned in the opening itself and achieved even a new all time high.

NIFTY has signalled indecisiveness after a long time. Though chart patterns looks good, it has signalled many possible intraday lows below 4145, 3982, 3800,.....

Liquidity might get sucked out of the markets, after the two large public offerings - DLF and ICICI bank. It could affect the bull rally to some extent. This is a note of caution for long term investors.

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.

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 4050.80. No immediate resistance. Strong support stays near 4050-4100 level.

UPPER BAND-> 4305.44.

LOWER BAND-> 4016.71.

Higher upper band provides some scope for NIFTY on the upperside.

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.