July 9,07

NIFTY OUTLOOK - TECHNICAL ANALYSIS
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NIFTY closes at 4406.05

NIFTY has signalled indecisiveness. There is no symptom of weakness in the charts. However, be cautious and trade with stop losses while taking long positions.

Commerce ministry, PM and RBI are discussing the ways and means to help exporters from crisis due to appreciating Indian Rupees. So, some measures could be expected, which would help Rupee stay afloat or depreciate. A depreciating currency would encourage FIIs or hedge funds to book profits and encourage outflow of currency. This might result in lower liquidity. The current rally is due to liquidity rather than fundamentals. But it might take some time for such measures to effect the markets. This is an ideal situation, where every upmove could be utilised to book profits. Long term investors could use the cash in hand, when there is a decent correction. So, systematic selling is recommended.

An intraday low bleow 4302. But the time frame for them to take place is unpredictable. Upper band stays at 4451.12 providing scope for NIFTY move up further, when there is a good momentum.

NIFTY's immediate support level stays at 4366.60.

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.

Upper band -> 4451.15.

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.