Feb 15,2007

NIFTY OUTLOOK - TECHNICAL ANALYSIS
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NIFTY Close 4047.10.

NIFTY has corrected substantially to test 50 DAY SMA for the past two days. However, the sole consolation for the past two days were closings. NIFTY closed well above 50 Day SMA. Even pull back can be expected from this range provided the money flows from FIIs,other institutions and public.

Now the trend implies indecisiveness. Though it looks like a pull back, the momentum should play further for a good rally.

NIFTY has to test two crucial resistances at 4058.55 and 4199.50 to move up further.

The immediate support level is at 3909.65.

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.

Today's upper band and lower band lies at 4242.55 & 4001.72.

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

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