Sep 21,20071
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NIFTY OUTLOOK - TECHNICAL ANALYSIS
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NIFTY Closes at 4447.55. Sensex Closes at 16347.96.

As per our expectation NIFTY had a higher close than day before yesterday's close. Now NIFTY has signalled indecisiveness. Huge upside cannot be expected from this levels day-to-day basis, as NIFTY trades near upper band.

For intraday players, 30-40 points above upperband serves as resistance.

As mentioned in previous post NIFTY is likely to test a low below 4446 and 4453 in short to medium term.

Support is at 4526.50.

Rupees appreciation against dollar is a dangerous proposition for Indian Economy in long term. It might prevent and discourage new investments in Export oriented industries. Textiles, IT and other exporting industries, which have a major contribution in Indian Growth story might not have encouraging growth and end up in economy slowdown. If IT industry gets affected, spending could comedown and affect Real Estate firms. Moreover, there is a chance of huge trade deficits and current account deficits, which could encourage FII outflows, which might affect markets.

Upper band -> 4756.

Lower band -> 4166.



Note: These views do not have any relevance to NIFTY futures.

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