Feb 23,2007

NIFTY OUTLOOK - TECHNICAL ANALYSIS
__________________________________

NIFTY Close 4040. SENSEX Close 14021.31.

NIFTY tested exactly the support level mentioned yesterday. Mentioned support level 4023.20. Actual low of NIFTY yesterday 4023.15. This is breach of support which implies a low below 4011.35. Though the timeframe for this low cannot be specified exact it would be tested.

An intraday high above 4137 is inevitable though the time factor for it to take place couldnot be judged.

NIFTY has to test a crucial resistance at 4199.50 to move up further. So if there is a bounce back there is a huge gap to be filled.

The immediate support level is at 3909.65. This is far below. Consider lower band for a better view on lower side.

Today's upper band and lower band lies at 4250.23 & 4005.41.

If Nifty moves below lower band by 20-30 points go long.

Our prefered view is NIFTY should close below lower band once to gain strength before a rally takes place.

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.

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

STOCKS TO WATCH
Den so India
South Indian Bank

Technical watch:
This is the right time to buy HINDUSTAN LEVER LTD. It can be bought from this level to further dips, if any. This is a bottom picking technical strategy.