Aug 2,2007

NIFTY OUTLOOK - TECHNICAL ANALYSIS
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NIFTY closes at 4345.85.

It was mentioned in yesterday's post that NIFTY would test 4345 and 4302 in the medium term. 4345 was unexpectedly tested yesterday itself. 4302 is yet to be tested, which need not take place immediately. However, another low below 4340 and a high above 4534 are inevitable. The timeframe for them to take place is unpredictable.

NIFTY has closed below medium term trendline and its chart patterns are not looking good. However, bounce back cannot be ruled out due to the liquidity conditions in the world market. But the bounce backs could be used to reduce the existing long positions booking profits.

Caution: Don't take any fresh long or short 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 -> 4664.90.

Lower band -> 4297.63.

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.