Mar 14,2007

NIFTY OUTLOOK (Based on TECHNICAL ANALYSIS)
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NIFTY close 3770.55. Sensex 12982.98.

NIFTY's move has signalled a technical indecisiveness. Either an intraday move above 3781.45 or an intraday low below 3713.90 could set further upside or downside. NIFTY waits for a trigger for the direction. Sharp fallin US markets and other Asian markets may act as a trigger. If NIFTY closes below 3718, expect the next step of correction to take place.

NIFTY has to move up with good volumes for a confirmation of pull back rally. If NIFTY closes above 3811.2, further positives could be expected, as it strengthens the chart pattern. But the weak PCR OI doesnot provide support for the upward journey.

An intraday low below 3425.15 and a close below 3449.50 are inevitable, although the date & time at which it could take place couldn't be estimated. It might even happen after a rally.

NIFTY has closed above 5 day SMA and maintained above the lower band for the past three days. It is positive. But if there is a huge fall today, the positive would turn out to be negatives.

Immediate resistance for NIFTY stays at 3908.60. If it is tested and an intraday high above 3958.90 is tested then the further positives could be expected.

Significant support for NIFTY stays near 3550-3580 levels. 3420.50 is a very impotant support level which should stay unbroken.

On the upper side NIFTY will test 4137.50(inevitable - sure- medium term).

Upper Band ->4258.95

Lower Band ->3513

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

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