Jan 29,2007

NIFTY OUTLOOK - TECHNICAL ANALYSIS
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NIFTY Close 4124.45.

Further trend in the NIFTY depends largely upon triggers. The trigger might be news based trigger. RBI credit policy, FED interest policy, Tata Corus (Tata wins the deal- It might act as a dampener to the stock in the medium term, since the bid price is high), etc., might act as triggers.

If there is a break out in the upper side, then Nifty will test 4300 within 9 trading days.

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

The immediate support level is at 4084.60. However, there is no significant resistance in the upper side, except the upper band.

If NIFTY closes above upper band by 20-30 points (4186.90), start booking your profits systematically. Don't sell the whole lot of shares then. You can dilute 5-10%.

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 3869.80.

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

Stocks to Watch(SHORT TO MEDIUM TERM)
BHAGYANAGAR INDIA LTD.
GAYATRI PROJECT