Feb 4,2008
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NIFTY OUTLOOK - TECHNICAL ANALYSIS
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NIFTY Closes at 5317.25. SENSEX Closes at 18,242.58.

Positive cues from Asian markets and other world markets likely to have impact on Indian markets. NIFTY's resistance level staying at 5760 levels provide scope for it move very quickly. If NIFTY moves up above 5400 levels, it would confirm another close abovet today's high in short term.

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.

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 until 6250 is tested. A close near 5700 in medium term is imminent.

Upper Band -> 6764.59.

Lower Band -> 4670.68

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