June 14, 07

NIFTY OUTLOOK - TECHNICAL ANALYSIS
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NIFTY closes at 4170.

"Possibility of bounce back from these levels or after a little bit lower level cannot be ruled out." , "An intraday high above 4170 is inevitable" -The Quotes from yesterday's post.

As mentioned in yesterday's post NIFTY is likely to bounce back. However, if it had to rally up, it might have to cross crucial resistances at 4225 and 4237.80. The liquidity would be the dictating factor in the market. However, the rally in the NIFTY might not sustain for a longer period. NIFTY might move down in the last week of the month or even before.

It is consistently mentioned about the possible lows in this page - "possible lows below 4145, 3985 and 3800 are inevitable." As per our view NIFTY has tested 4145. Expect the rest of the lows to be tested. The time frame for it to take place is unpredictable.

Similarly, another new high on intraday basis above the ever high 4362.95 is inevitable too, with an unpredictable time frame.

Markets likely to face lower liquidity after public offers of DLF, ICICI BANK, etc.,. Since these issues are larger issues they may suck some liquidity out of the market, which may affect the further up move in the NIFTY after few weeks.

Upper band -> 4337.46

Lower band -> 4112.34

Lower band and 50 day sma at 4102.8 might act as a support. But if there is a bearish onslaught, these support levels might not withstand.

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

Stocks to Watch
[NO STOCKS]-> As we advised profit booking for many weeks, no buy calls were mentioned here for many posts. We maintain the Status quo.