TECHNICAL OUTLOOK, 16 JUNE

Nifty 4539.35

Short term
Nifty seems to have bottomed out at 4370 level. Nifty is likely to rally towards 4950 initially in coming trading sessions. If Nifty moves above 4540, and if it doesn’t come below this level, then the bottom would be confirmed.

Instead, the level 4370 is violated, then Nifty is likely to test 4000 in coming trading sessions.

Correction in the US, Asian, and European markets are likely to terminate at current levels and it would be followed by a sharp rally in coming weeks.



Extreme Short term
In the extreme short term, the level 4540 is crucial. As long as Nifty stays above this level, it is likely to test 4950 initially.


Intraday
Today, if Nifty trades above 4540 then it could test 4700.



Trading Strategy
Now the crucial level is 4540. Be short below this level and be long above this level.



Medium term outlook of Nifty dated on 23 January 2008
The medium term outlook of Nifty has turned bullish and it is likely to move towards a new all time high by this year end and this view holds good as long as Nifty stays above 4400.



Long term outlook of Nifty dated on 23 January 2008
The long term outlook of Nifty is looking bullish and it seems that Nifty is in the middle of this bull run. So, the bull run is likely to continue for another 4 to 5 years and this view holds good as long as Nifty stays above 4400.


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