July 6,07

NIFTY OUTLOOK - TECHNICAL ANALYSIS
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NIFTY closes at 4353.95. Sensex closes at 14861.89.

NIFTY tested short term sma after 4 trading sessions. "An intraday low below 4236.30 and 4302 are inevitable, although the time frame for them to take place is unknown. " This is a quote from yesterday's post. A low below 4236.30 was tested yesterday. Expect a low bleow 4302. It need not take place immediately. It provides a clue for systematic selling at higher levels to take advantage of the possible low. Market stays indecisive, although it signalled possible low below yesterday low. NIFTY has to consolidate if it had to move up further. However upper band provide some scope if there is any upward momentum.

NIFTY's immediate support level stays at 4276.75.

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.

Long term traders should utilise the market bull run to book profits systematically. A decent correction could be expected after rally, where the people holding cash could utilise the opportunity to buy at bottoms. Long positions require strict stop loss.

Upper band -> 4394.50.

Lower band -> 4082.

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.