Mar 15,2007

NIFTY OUTLOOK (Based on TECHNICAL ANALYSIS)
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NIFTY close 3641.10. Sensex 12529.62.

"If NIFTY closes below 3718, expect the next step of correction to take place." This is a quote from yesterday's post. NIFTY will test yesterday's low of 3623 in the near future. It looks as if the next leg of correction has begun. If NIFTY breaks the support level around 3550, then it might move down quickly to test 3425.15.

NIFTY has to move up with good volumes for a pull back rally. If NIFTY closes above 3811.2, further positives could be expected, as it strengthens the chart pattern. But the weak PCR OI doesnot provide support for the upward journey.

An intraday low below 3425.15 and a close below 3449.50 are inevitable, although the date & time at which it could take place couldn't be estimated. However, NIFTY shouldn't close below 3428.55.

NIFTY has closed above 5 day SMA and maintained above the lower band for the past three days. It is positive. But if there is a huge fall today, the positive would turn out to be negatives.

Immediate resistance for NIFTY stays at 3908.60. If it is tested and an intraday high above 3958.90 is tested then the further positives could be expected.

Significant support for NIFTY stays near 3550-3580 levels. 3420.50 is a very impotant support level which should stay unbroken.

On the upper side NIFTY will test 4137.50(inevitable - sure- medium term).

Upper Band ->4244.93

Lower Band ->3487.30

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

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