Aug 22,2007

NIFTY OUTLOOK - TECHNICAL ANALYSIS
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NIFTY closes at 4074.90. Sensex Closes at 14427.55.

NIFTY is at a crucial point. Though it tested 200 day sma, it closed just above it. So, just wait and watch. As mentioned earlier there is a possibility for Nifty to test Friday low near 4000 levels. So, trade cautiously.

IT stocks look attractive for long term buy. Start accumulating them in every dip. In particular, Infosys and TCS are fairly priced, which could be accumulated in every fall.

It is better to concentrate on individual stock picks looking at the valuations. NIFTY has bounced back exactly from the crucial support levels.

But buyers should stay cautious as the political musings might have some repercussions on NIFTY.

Sharp volatality in the market could be expected.Resistance stays at 4372.95. support is near 3981.

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

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 -> 4704.

Lower band -> 4150.

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.