Jan 31,2008
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NIFTY OUTLOOK - TECHNICAL ANALYSIS
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NIFTY Closes at 5167.60. SENSEX Closes at 17,758.64.

US Fed rate cut,Liquid cash flow from Reliance Power IPO excess, along with Pre-budget expectations, likely to drive the markets up in medium term.

In medium term volatality could be expected. Being the settlement day, market stays unpredictable.

Yesterday's low might be tested.

A close above 5380 levels could be expected in medium term.

NIFTY & Sensex tested the rock bottom, likely lower levels for FY 09, as per fundamental analysis on Jan 22. 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 at least till 6250. A close near 5700 in medium term is imminent.

Upper Band -> 6764.59.

Lower Band -> 4770

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