Mar 1,2007

NIFTY OUTLOOK - TECHNICAL ANALYSIS
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NIFTY close 3745.30. Sensex 12938.09.

"NIFTY has signalled a possible close below 3840 & 3801.65(inevitable). But it is difficult to specify the time frame. If NIFTY test this levels in the recent future, it would be a sigh of relief, since it would help NIFTY to bottom, before the next upward rally. Else these levels would be tested after an upward rally." This is a quote of yesterday's post. Finally NIFTY has closed below 3801.65, which was mentioned in all posts for atleast a month or two, thanks to the market fall.

Now NIFTY is in the process of finding a new bottom to bounce back from these levels.
NIFTY might test yesterday's bottom(3674.85) before a bounce back.

Contrary to other analysts recommendations, we recommend a systemmatic buy in every dip. People who are interested in bottom picking has got the opportunity here to pick stocks at cheaper prices. 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.

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

STOCKS TO WATCH
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Alok Industries
Balrampur chini
Bajaj Hindustan
Goldstone Tech
Pioneer Embroideries
Shree Renuga Sugars
Vivimed labs
Sub Projects

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.