Jan 17,2007
NIFTY OUTLOOK - TECHNICAL ANALYSIS
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NIFTY Close 4080.50. BSE SENSEX CLOSE 14114.73.

For a spectacular rally in NIFTY, it has to consolidate with upward momentum.

NIFTY surpasses upper band for the past two days by 20-30 points (intraday), but it does not closes above the same by atleast 20 points, providing scope for improvement in upper band. 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 concentrate on 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 4104.10. Today's lower band lies at 3788.60.

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

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