June 21, 07

NIFTY OUTLOOK - TECHNICAL ANALYSIS
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NIFTY closes at 4248.65. SENSEX closes at 14411.95.

NIFTY closes above medium term sma after 10 trading sessions. It is accompanied by good chart pattern. NIFTY took over the only resistance yesterday, implies an inevitable intraday high above 4257. Upper band stays at 4331.50, provides good cushion for NIFTY, if there is any momentum. So long term investors could expect some highs to book profits and exit their positions systematically.

NIFTY's immediate support level stays at 4191.

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(particularly FII flows), which may affect the further up move in the NIFTY after few weeks.

Upper band -> 4331.50.

Lower band -> 4100.

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.