Jan 22,2008
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NIFTY OUTLOOK - TECHNICAL ANALYSIS
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NIFTY Closes at 5708.8. SENSEX Closes at 17,605.35.

"It is to be watched today, to exactly know, whether it would bounce back or plunge into a corrective mode." This is the quote from yesterday's post. Unexpectedly markets corrected steeply.

NIFTY found support exactly near the retracement support yesterday. If the retracement point 4955.8 remains unbroken, we could expect a bounce back from these levels.

Long term investors and people sitting with cash in their hands should utilise this opportunity to take delivery in Equity markets. Buy in every dip is our recommendation. Market is sure to bounce back in medium term.

In the upper side, we have got technical confirmation for testing friday's close(5705), 6260 levels and 6347 levels. So, people with money and patience should either buy or hold their portfolio intact or make changes in portfolio.

NIFTY's next crucial support stays at 200 day sma - 4888.86. Let us hope, this level is not broken or this level is tested and a bounce back from this levels.


NIFTY has finally closed below lower band. Although, this is the crucial point, buying should be done at every dip from these levels, as we've got a confirmation for 6345 levels being tested again.



Upper band -> 6556.73.

Lower band -> 5551.73.


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