Jan 24,2007

NIFTY OUTLOOK - TECHNICAL ANALYSIS
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NIFTY Close 4066.10. BSE SENSEX CLOSE 14041.24.

An intraday low below yesterday's low (4056.45) is inevitable, although the timeframe could not be fixed. As mentioned in yesterday's post, NIFTY has tested 4058.35.

Any deep correction is ruled out at this point of time, since PCR OI is very high.

The charts pattern ensures new high in NIFTY, even if there is any blip.

The immediate support level is at 4018.70. If this support is tested, an intraday low below 4002 is inevitable, which need not take place immediately. However, there is no significant resistance.

If NIFTY closes above upper band by 20-30 points (4154.52), 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.

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

Today's lower band lies at 3847.33.

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

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