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Wednesday, July 6, 2011

MARKET OUTLOOK Nifty 6th July

The NIFTY opened on a tentative note and remained under pressure for most of the day’s trade. The nifty
hit a low of 5612.30, before picking up momentum towards the end of the day. The nifty finally closed at
5632.10 with a loss of 18 points.

The nifty did witness supply pressure today; however it has also managed to hold the support level of 5600. In case the nifty closes below 5600, expect a bit more of corrective decline to levels of 5560 /5515 levels. Declines if any to these levels should be used to initiate long positions and traders should keep a positive bias as long as the nifty remains above 5500 levels on a daily closing basis.

On the upside the index has immediate resistances at the 5700-5720 levels (declining trendline resistance).A close above these levels would see the index gaining momentum on the upside and could test the levels of 5850 /5900.

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