Dec 13,06
NIFTY OUTLOOK - TECHNICAL ANALYSIS
___________________________________

Finally NIFTY has started long awaited correction. It has pierced and closed below the lower band. Long Term investors might start buying stocks systematically. The investments should be done systematically only. Buy in every dip. It may be difficult to exactly indicate the bottom in this sort of situations.

PCR OI has declined drastically indicating bearish sentiment in the market. A close below 50 day sma(3793.45) is also a bad signal. A close above this level is essential for a good sentiment in the short term.

NIFTY should cross 3985.85 in the upperside to avoid bearish sentiment. NIFTY charts has an indication for a new high before the fall begun. It may take some time. So patience and discipline in investing would fetch descent profits. Many global funds await to invest in this market. So don't get panicked and short heavily.

Immediate support lies at 3597. Immediate resistance at 3870.95.

Today's upper band lies at 4073. Today's lower band lies at 3778.25

Support Levels:
3597.933333
3477.466667
3371.133333
3325.216667


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

Stocks to Watch(SHORT TO MEDIUM TERM)

NITCO TILES