Jan 23,2007

NIFTY OUTLOOK - TECHNICAL ANALYSIS
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NIFTY Close 4102.45. BSE SENSEX CLOSE 14209.24.



NIFTY is trending well with an upward momentum. However, NIFTY has signalled the indecisiveness again.

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. Even, the immediate support level is at 4018.70. So, there is a huge gap between current level and support level. However, there is no significant resistance.

If NIFTY closes above upper band by 20-30 points (4156.68), 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 4156.68. Today's lower band lies at 3823.02.

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

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