Jan 19,2007
NIFTY OUTLOOK - TECHNICAL ANALYSIS
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NIFTY Close 4109.05. BSE SENSEX CLOSE 14217.75.

NIFTY is trending well with an upward momentum. The upper band keeps on expanding providing further scope for upward momentum. There is an indication in the patterns for a high above yesterday's high of 4140.25. However, it need not make a new high today itself.

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 4141.46. Today's lower band lies at 3786.28.

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

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