Feb 8,2007

NIFTY OUTLOOK - TECHNICAL ANALYSIS
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NIFTY Close 4224.25. BSE Close 14643.13.

Upper band of NIFTY has expanded well to support our view that NIFTY would test a target near 4300 in 3 to 4 trading sessions.

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, which lies at 4279.30.

If NIFTY closes above upper band by 20-30 points, start booking your profits systematically. Don't sell the whole lot of shares then. You can dilute 5-10% of your portfolio selectively (particularly NIFTY stocks).

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 3877.70.

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

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