June 26, 07

NIFTY OUTLOOK - TECHNICAL ANALYSIS
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NIFTY closes at 4259.40. SENSEX closes at 14487.72.

NIFTY stays indecisive for the past two trading sessions. It has to be watched whether this is a consolidation phase before an upmove or a down trend. If it could cross 4284.65 in closing, it might gain strength in charts to move up with greater momentum. Chart patterns are looking good, as of now. So,long term investors could expect some highs to book profits and exit their positions systematically.

Nifty likely to test yesterday's low 4236.30. But the time is unpredictable.

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 -> 4338.

Lower band -> 4100.90.

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.