Feb 20,2007

NIFTY OUTLOOK - TECHNICAL ANALYSIS
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NIFTY Close 4164.55. SENSEX Close 14402.90.

NIFTY moves with the expected lines. As mentioned yesterday NIFTY has tested the high of 4155.65 and closed above 4152.30. However, further momentum still stays unpredictable though it looks like a break out rally. If there is a higher PCR OI the rally could continue with great strength.

NIFTY has to test a crucial resistance at 4199.50 to move up further. Though there seemed to be an upward momentum, NIFTY could not test the resistance. This resistance has to be taken. If NIFTY closes above 4244.50(today), it could move up further few more sessions. Or Otherwise some consolidation has to take place at these levels to gain further strength.

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 to long 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 4247.80 & 4010.93.

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
BAJAJ HINDUSTAN