June 8, 07

NIFTY OUTLOOK - TECHNICAL ANALYSIS
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NIFTY closes at 4179.50. SENSEX closes at 14186.18.

Sorry. I didnot post yesterday. But as per the June 6,2007 post, the trend follows.
Let me quote some lines from it- "If Nifty moves below yesterday’s low 4249.1 (intraday), it provides the signal of caution. In such an instance, it is to be remembered the possibility of a low close at the end of this June month settlement, irrespective of any upside in between. So, consider this day as the trend setter."
Markets behaved as per our view. The negative trend has been set. Even if there is a reversal, markets might not perform well in the last week of this settlement. It provides clue, insisting profit booking on upmoves." This is the quote from previous post- So, exit when the sky is clear. Now the clarity in the sky is a question.

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 this 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. Even the first quarter result season might have some impact in NIFTY.

RBI might interfere in the forex markets at some point to stabilize the appreciation of rupee. If rupee starts depreciating, it would urge the FIIs to move out of Indian markets, which would ensure some fund outflow. On such a circumstance a deep correction could be expected.

Upper band -> 4357.36
Lower band -> 4077.21

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

Stocks to Watch
[NO STOCKS]-> We advise profit booking. So no buy calls were mentioned here for past few posts.