Jan 23,2008
-----------

NIFTY OUTLOOK - TECHNICAL ANALYSIS
__________________________________

NIFTY Closes at 4899.3. SENSEX Closes at 16,729.94.

"NIFTY is likely to test a low below 4453 in long term." This is the quote from previous posts. It has been consistently maintained that these levels would be tested. Alas! NIFTY tested these levels yesterday.

Although 200 day SMA(4894.14) was tested intraday, NIFTY has closed just above that.This is the prime aspect in technical parlance.Provided the global cues, NIFTY is likely to bounce back with big bang.

NIFTY & Sensex tested the rock bottoms, likely lower levels for FY 09, as per fundamental analysis, yesterday. They are the bottom levels to be utilised for long term buying.

As we mentioned earlier NIFTY is likely to test 6260 and 6345 levels. So, there is no need for any panic. Patience should be maintained atleast till 6250. A close near Friday's close near 5700 in medium term is imminent.

Upper Band -> 6716.90

Lower Band -> 5308.97

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