Aug 27,2007

NIFTY OUTLOOK - TECHNICAL ANALYSIS
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NIFTY closes at 4302.60. Sensex Closes at 14842.38.

"NIFTY likely to test 4268.575 in short to medium term". This is the quote from previous post. As per our expectation NIFTY has tested the said level and even closed above it. Although NIFTY tested medium term sma intraday, it could not close above it yesterday. A close above medium term sma would make NIFTY bullish.

Short term chart patterns look bullish, confirming a close above 4302.60. However, it is to be watched, if it could take place immediately.

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

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.

Sharp volatality in the market could be expected.Resistance stays at 4372.95. support is near 4167.20.

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 -> 4570.

Lower band -> 4048.75.

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.