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Thursday, August 4, 2011

MARKET OUTLOOK Nifty 04th August

The Nifty opened the session on a bearish note on the back of negative cues from its global peers.

The index registered an intraday low of 5378 levels and thereafter traded in a narrow range for the rest of the session. The Nifty finally closed at 5404 levels with a loss of 51 points.

With today’s movement the NIFTY has managed to achieve our second downside targets of 5380 levels. Going forward the index could take a breather after registering a strong decline of more than 170 points in the last two sessions.

In case the nifty manages to hold on to support levels of 5380 expect a rebound to levels of 5435-5450 /5480 over the next few days.

The immediate support is placed at 5380 followed by the 5343-5330 (NIFTY Gap support area).

Sustenance below the 5330 would be negative and could trigger further declines to the level of 5270-5250 in the near term.

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