May 4,2007

NIFTY OUTLOOK (Based on TECHNICAL ANALYSIS)
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NIFTY CLOSE 4150.85. BSE SENSEX 14078.21.

NIFTY has finally broke out again. NIFTY likely to test yesterday's high of 4161.2 and 4217.90. Although the timeframe for it to test the said levels might not be predictable. Chart pattern is looking good.

When there is a deep correction, an intraday low below 3575 is likely (medium term to long term). NIFTY is likely to test a low below 3800 in the medium term.

This doesnot mean that market would turn bearish immediately. However, it does mean that it is the time to book profits. There are no further triggers, except a few that could drive markets upside. So, 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 3980.65.

UPPER BAND-> 4290.98

LOWER BAND-> 3622.95

Upper band provides scope for higher upside, if there is an upward momentum. 20 to 40 points above upper band may act as intraday resistance zone for NIFTY.

Note: These views do not have any relevance to NIFTY futures.

STOCKS TO WATCH
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