Feb 12,2007

NIFTY OUTLOOK - TECHNICAL ANALYSIS
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NIFTY Close 4187.40. BSE Close 14538.90.

NIFTY'S downward movement on Friday is little bit surprising. Though NIFTY might test Friday's low(4171.80), a huge correction of 200 points need not be expected at this point of time. If there is a upward momentum due to any fund flows from FIIs, you can even see the NIFTY moving near 4300 range within few trading days. Liquidity would drive the market in either direction. Let us wait and watch.

An intraday low below 4165.85 & 4056.45 are inevitable, although the timeframe could not be fixed. It may take some time.

The immediate support level is at 4120. However there is no immediate resistance except the upper band(428845).

If NIFTY closes above upper band by 20-30 points, start booking your profits systematically.

NIFTY has signalled a possible close below 3840 & 3801.65(inevitable), which may happen any time (medium term). 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.

Today's lower band lies at 3926.81.

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

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