NIFTY OUTLOOK

NIFTY WILL OPEN FLAT TO POSITIVE AND WILL STRUGGLE WITH 5450 AND

5480,MARK.NOT MUCH UPSIDE LEFT BUT SIDEWAYS MOVEMENT WILL

CONTINUE.THIS IS EXPIRY WEEK AND LOTS OF VOLATILITY WILL SEEN AT UPPER

LEVELS.KEEP STRICT SL AND TARGETS TO PLAY THIS WEEK.I FEEL EXPIRY WILL

TAKE AT 5333 MARK,AS WE HAVE SEEN HUGE UPSIDE FROM 4786 LEVELS.

Nifty — Fundamentally Demystified

If we look at Nifty closed at 22.75 on 23rd Jul’10. Nifty’s PER(Price/Earnings Ratio) chart from the year 1999 is reproduced below. PER exceeded 24 only on two occasions ie. in 2000 and 2008, after a gap of eight years. On both occasions heavy market crash followed and PER came down to 12

For tomorrow, one can consider going long with a stop loss of 5420. On higher side it will find resistance at 5475 - 5515 and 5545.

Short position may be taken only below 5420 with stop loss of 5450. At lower levels, it will find support at 5350.