June 19, 07

NIFTY OUTLOOK - TECHNICAL ANALYSIS
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NIFTY closes at 4147.1. SENSEX closes at 14080.14.

NIFTY has closed below short term sma. If it had closed above short term sma yesterday, a confirmation for another rally might have been ensured. But it has behaved in a different manner. An intraday low below 4141 is inevitable. If there is weakness in International markets, NIFTY could test this level.

NIFTY tested the immediate support level yesterday and the next support level stays at 4100(the lower band)

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 -> 4339.

Lower band -> 4100.

Immediate resistances -> 4222.65 & 4237.80

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

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