Aug 3,2007

NIFTY OUTLOOK - TECHNICAL ANALYSIS
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NIFTY closes at 4356.35.

NIFTY tested 50 day sma yesterday intraday and it stays indecisive. But failed to close below it. Short term bouncebacks could be expected. But it might not be realistic, as analysts predicts. In the medium term 50 day sma would be broken and a free fall from that levels could be witnessed.

A high above 4534 and a low below 4305 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 -> 4665.

Lower band -> 4297.

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.