Monday 13 August 2007

Very High chances of Nifty @ 3700

Very high chance of Nifty falling to 3700; India's price-momentum diversion is a warning sign: CLSA

Mark Stevenson, Technical Analyst of CLSA said that nothwistanding for short term volatility, set for another legdown to 1365 level and also set for more correction on Dow Jones Industrial Average to 13065 levels. CBOE VIX is likely to see rallies, S&P 500 would move lower. Nifty could test March low of 3700 by in next 2 quarters. He said that India's price-momentum diversion is a warning sign. There are still have few weeks of turbulence to work through. Also, there is a risk of more serious and prolonged correction. He believes that some markets could see declines in excess of 15-20%.

He further said that Nymex Crude has peaked at $ 78-79 and the next target is of $ 66. He believes that the crude could fall below $ 60 next year which has peaked at $ 78-79. About Gold, he said that he is not convinced about gold unless it crosses $ 700 levels. There is a very high chance of Nifty falling to 3700, he finally said.