Aug 13,2007

NIFTY OUTLOOK - TECHNICAL ANALYSIS
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NIFTY closes at 4333.35.

NIFTY closes below 50 day sma, implies steep fall, provided a negative news affecting makets. Otherwise it might pullback little bit. Don't take long positions.

Sharp volatality in the market could be expected.

Immediate support stays at 4191. Immediate resistance stays at 4441.

"A low below recent low 4267.15 could be expected in medium term" - mentioned in previous post. It was tested the same day before a bounce back.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 -> 4673.

Lower band -> 4279.

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.