June 18, 07

NIFTY OUTLOOK - TECHNICAL ANALYSIS
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NIFTY closes at 4171.45. SENSEX closes at 14162.70.

As usual NIFTY stays indecisive again. It could not test or cross any resistance level on friday, although it had a good rally. Alas! it closed almost flat, the consolation is second consecutive close above short term sma. Short term trend stays unpredictable, though chart patterns looks as if a pull back has occured, which needs to be confirmed. Liquidity would be the dictating factor in the days to come. 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 -> 4337.60.

Lower band -> 4107.66.

Immediate support -> 4152.30.

Immediate resistances -> 4222.65 & 4237.80

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.