Aug 17,2007

NIFTY OUTLOOK - TECHNICAL ANALYSIS
__________________________________

NIFTY closes at 4178.60. Sensex close 14358.20.

"NIFTY closes below 50 day sma, implies steep fall, provided a negative news affecting makets. Don't take long positions". This is the quote from last post. It has worked very well and the steep correction witnessed yesterday was expected.

4100 levels might act as next support levels. 200 day sma stays around 4065. It might act as another support.Expect the markets to correct downwards today also, as there is a sharp downfall in asian markets. Sharp depreciation of rupee might discourage hedge funds to book profits.

Sharp volatality in the market could be expected.

An intraday high above 4534 is inevitable in medium term to long term.

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

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 -> 4687.

Lower band -> 4209.

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

Stocks to Watch
===============
[NO STOCKS]-> As we advised profit booking for many weeks, no buy calls were mentioned here for many posts. We maintain the Status quo.