Jan 18,2007
NIFTY OUTLOOK - TECHNICAL ANALYSIS
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NIFTY Close 4076.45. BSE SENSEX CLOSE 14131.34.

For a spectacular rally in NIFTY, it has to consolidate with upward momentum.

NIFTY is consolidating for the past two days and a new trend would be set in the days to come. The trend might be positive or negative, which would depend upon further momentum. If NIFTY closes above upper band by 20-30 points, start booking your profits systematically. Don't sell the whole lot of shares then. You can dilute 5-10%.

Similarly NIFTY has signalled a possible close below 3840 & 3801.65(inevitable), which may happen any time. But it is difficult to specify the time frame.

The best strategy in this market is to concentrate on individual scrips, which could move up due to their fundamentals. Markets could move either way. It is better to trade with strict stop losses.

Today's upper band lies at 4120.40. Today's lower band lies at 3790.20.

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

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