Feb 26,2007

NIFTY OUTLOOK - TECHNICAL ANALYSIS
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"Our prefered view is NIFTY should close below lower band once to gain strength before a rally takes place." This was the quote from Friday's post. NIFTY has closed well below the lower band of 3972.60.

PCR OI has strengthened a little bid, though it is not worth enough for good gains. But it might gain further strength in the weeks to come.

Contrary to other analysts recommendations, we recommend a systemmatic buying call from this level. People who are interested in bottom picking has got the opportunity here to pick stocks at cheaper prices. Even though NIFTY could correct to some extent, it would correct only just 5-10%. Don't wait for NIFTY or stocks to correct, start buying stocks, which are fundamentally good. Just carry little cash to buy if there is a further correction.

NIFTY would test 4137.50(inevitable - sure) in the short to medium term. So start buying and enjoy profits in the shorter to medium time frame. Don't short unnecessarily and risk your money.

An intraday low of 3895.10 is inevitable too, though the time frame might not be assessable.

NIFTY has signalled a possible close below 3840 & 3801.65(inevitable). But it is difficult to specify the time frame.

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

STOCKS TO WATCH
POWER FINANCE CORPORATION
DONEAR INDUSTRIES
AUTOLINE INDUSTRIES

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