May 6,2007

NIFTY OUTLOOK (Based on TECHNICAL ANALYSIS)
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NIFTY CLOSE 4117.35. BSE SENSEX 13934.2.

NIFTY has tested 4161.20 as mentioned in previous post. But it couldnot stay with the momentum. NIFTY likely to test 4217.90. Although, the timeframe to test it might be unpredictable.

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 4071.20. No resistance.

UPPER BAND-> 4285

LOWER BAND-> 3674.11

High upper band and Low lower band provides scope for a steep raise or fall based on the 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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