TECHNICAL OUTLOOK, 1 JULY

DAILY NEWSLETTER


Nifty 4040.55


Short term

Nifty is likely to bottom out around 3950-4000 levels.


Nifty is in the process of bottom formation. Any bounce back from current levels should move above 4350, to confirm the bottom.

As long as Nifty stays above May 2006 high of 3750, the long term trend and medium term bull trend of the market would be intact.




Extreme Short term

In the extreme short term, the level 3950 is crucial.



Intraday

Today, if Nifty trades below 4060 then it could test 3950. Instead, if it trades above 4060, then it could test 4140.




Trading Strategy

Now the crucial level is 3950. Initiate longs with a stop at 3900.





Medium term outlook of Nifty dated on 25 June 2008

The medium term outlook of Nifty has turned bullish and it is likely to move towards 5500 by this year end and this view holds good as long as Nifty stays above 3950.



Long term outlook of Nifty dated on 25 June 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 3950.



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