Jan 22,2007
NIFTY OUTLOOK - TECHNICAL ANALYSIS
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NIFTY Close 4090.15. BSE SENSEX CLOSE 14182.71.

NIFTY is trending well with an upward momentum. The upper band keeps on expanding providing further scope for upward momentum.

Any deep correction is ruled out at this point of time, since PCR OI is very high.

The charts pattern ensures new high in NIFTY, even if there is any minor blip.
In the lower side, a low below 4058.35 is inevitable, but the time factor could not be assumed.

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 4151.14. Today's lower band lies at 3801.20.

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

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