June 19, 07

NIFTY OUTLOOK - TECHNICAL ANALYSIS
__________________________________

NIFTY closes at 4214.30. SENSEX closes at 14295.50.

NIFTY has closed above short term sma and just above medium term sma. It was fine to see a rally yesterday, which resulted in a good chart pattern. An intraday high above yesterday's high of 4222.4 is inevitable. However, NIFTY has to cross the crucial resistance level at 4237.75 to move up further, which remains unbroken for many trading sessions. Similarly, a close above medium term sma is a must for gaining strength, which didnot happen yesterday. So, wait and watch would be the best strategy. As mentioned yesterday NIFTY had a low below 4141 yesterday.

NIFTY's immediate support level stays at 4100(the lower band).

Liquidity would be the dictating factor in the days to come. 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 -> 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.