Jan 15,2007
NIFTY OUTLOOK - TECHNICAL ANALYSIS
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NIFTY Close 4052.45. BSE SENSEX CLOSE 14056.53.

As mentioned consistently in previous posts that there is a confirmation for new high and it would occur this month or next, the target was achieved on friday.
If NIFTY must rally spectacular, this is the time to consolidate. A rally like friday's require more strength. NIFTY has reached near upper band on closing basis.
If NIFTY closes above upper band by 20-30 points, start booking your profits systematically. Don't sell the whole lot of shares then. You can dilute 5-10%.

Similarly NIFTY has signalled a possible close below 3840 & 3801.65(inevitable), which may happen any time. But it is difficult to specify the time frame.

Higher PCR OI implies limited downside in NIFTY(short term),i.e., deep correction is ruled out.

The best strategy in this market is to go for individual scrips, which would move up due to their fundamentals. Markets could move either way. It is better to trade with strict stop losses.

Today's upper band lies at 4073.75. Today's lower band lies at 3766.50.

Note: These views do not have any relevance to NIFTY futures.

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