Jan 29,2007

NIFTY OUTLOOK - TECHNICAL ANALYSIS
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NIFTY Close 4147.70. BSE SENSEX CLOSE 14282.70.

NIFTY has reached the new high, as it was mentioned consistently for the past few days. Further upward momentum requires some strength. It is better to watch the market for the next two days for a new trend to emerge. If there is a confirmation of bullish trend, which can be infered from today's movement, NIFTY could move up to 4300 range in 10 trading days. If Nifty stays above 4131.90, in the next few trading sessions 4300 is possible in the shorter duration.

An intraday low below yesterday's low (4056.45) is inevitable, although the timeframe could not be fixed.

The immediate support level is at 4018.70. There is a huge gap. So, a 100+ point fall in Nifty could happen easily within few trading days, if there is any correction. However, there is no significant resistance in the upper side, except the upper band.

If NIFTY closes above upper band by 20-30 points (4175.01), 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 lower band lies at 3867.40.

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

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