Aug 10,2007

NIFTY OUTLOOK - TECHNICAL ANALYSIS
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NIFTY closes at 4403.20. Sensex close 15100.15.

As mentioned in last post the upsurge is short term. Market is going to witness a steep fall. In technical parlance having tested 50 day sma twice, would make NIFTY vulnerable and it would help it to correct deeply.

Although chart patterns are not looking good, markets are purely driven by some trends in the international markets. So, the positive upsurge in US and Asian markets may help NIFTY to move up in short to medium term. So, sharp volatality in the market could be expected.

Immediate support stays at 4337.

A low below recent low 4267.15 could be expected in medium term.Similarly,an intraday high above 4534 is inevitable. But the time taken to test it may be medium to long term.

If the US subprime crisis deepens, it could definitely affect the liquidity factor in all Asian markets, since Hedge Funds have much leveraged positions in Asia. Hedge Funds are directly or indirectly financed by subprime funds.

Caution: Don't take any fresh long position. Market might move either side with higher volatality, due to fundflow differences in world market.

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 in some future date. The time frame for it to take place is unpredictable.

Upper band -> 4669.

Lower band -> 4295.

In case of any downside look for lower band. 30-40 points below lower band could act as an intraday support level.

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.