May 29,2007

NIFTY OUTLOOK (Based on TECHNICAL ANALYSIS)
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NIFTY CLOSE 4293.25. SENSEX close 14508.21.

NIFTY has closed above its all time high again. Another intraday high above yesterday's intraday high of 4298.85 is inevitable. If this high is not tested today, expect it to be tested some other day in the future. Even the bullishness would just help the market to move 5-10% from the current levels, which may not be great.

Though chart patterns looks good, it has signalled many possible intraday lows below 4145, 3982, 3800,..... It serves as a note of caution while trading. Any long position should have a strict stop loss.

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

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-> 4322.

LOWER BAND-> 4011.16.

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.