Aug 8,2007

NIFTY OUTLOOK - TECHNICAL ANALYSIS
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NIFTY closes at 4356.35. Sensex close 14932.77.

Good news from U.S. FOMC might help markets to gain in short term. But how long will it survives is a question mark still.

Although chart patterns are not looking good, markets are purely driven by some trends in the international markets. So, the positive upsurge in US and Asian markets may help NIFTY to move up in short to medium term. So, sharp volatality in the market could be expected.

Immediate support stays at 4337.

An intraday high above 4436 and 4534 are inevitable. But the time taken to test them are unpredictable. Similarly, a low below recent low 4267.15 could be expected in medium term.

If the US subprime crisis deepens, it could definitely affect the liquidity factor in all Asian markets, since Hedge Funds have much leveraged positions in Asia. Hedge Funds are directly or indirectly financed by subprime funds.

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 -> 4669.

Lower band -> 4287.50.

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.