Feb 19,2007

NIFTY OUTLOOK - TECHNICAL ANALYSIS
__________________________________

NIFTY Close 4146.20. SENSEX Close 14355.55.

NIFTY has moved as expected. In the previous post, it was mentioned the possibility of pullback from these levels. Thursday's momentum might act as a break out for the next rally.

A high above 4155.65 will be tested in the near future. A close above 4152.30 is inevitable too. However, the time frame for the mentioned highs to be tested cannot be judged.

PCR OI has declined drastically. It implies limited strength to move up further. But it has to be watched if it could improve in the trading days to come.

NIFTY has to test a crucial resistance at 4199.50 to move up further.

The immediate support level is at 4023.20. There is a huge gap between current levels and the support which provides huge gap. In case of a dip even a dip above 100 points could happen.

NIFTY has signalled a possible close below 3840 & 3801.65(inevitable), which may occur any time after an upward rally(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 upper band and lower band lies at 4244.50 & 4006.25.

If Nifty moves above upper band by 20-30 points a systemmatic profit booking is advised.

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

STOCKS TO WATCH
PRAJAY ENGINEERING
REDINGTON
PEARL FASHION