Sep 24,20071
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NIFTY OUTLOOK - TECHNICAL ANALYSIS
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NIFTY Closes at 4837.55.

NIFTY has moved well up on friday, ensuring another intraday high above 4855 in the future. But NIFTY has move well above upper band. So, it is the time to start booking profits, irrespective of upward momentum. Higher volatality might bring a sudden fall, if there is any negative trigger. Time to trade cautious. Avoid fresh longs.

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 -> 4789.

Lower band -> 4166.



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

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