Feb 5,2007

NIFTY OUTLOOK - TECHNICAL ANALYSIS
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NIFTY Close 4183.50.

NIFTY trends well. As mentioned earlier, this may end up in the range near 4300 within 6 to 7 trading sessions.

An intraday low below yesterday's low (4056.45) is inevitable, although the timeframe could not be fixed. It may take some time.

The immediate support level is at 4120. However there is no immediate resistance except that of upper band, which lies at 4221.60.

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%.

NIFTY has signalled a possible close below 3840 & 3801.65(inevitable), which may happen any time (medium term). 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 3878.

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

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