Mar 2,2007

NIFTY OUTLOOK (Based on TECHNICAL ANALYSIS)
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NIFTY close 3811.20. Sensex 13159.55.

Our prefered view is NIFTY should test wednesday's bottom(3674.85) before a bounce back. But it didnot happen yesterday. Instead, short covering has helped it to bounce back to higher levels without testing the bottom. It implies a possibility of one more downside in the future.

NIFTY has finally closed above lower band. If there is a positive momentum it might move up. Actually the real resistance for NIFTY stays at 4199.45. Rest of the resistance or short term resistances, which would not sustain. So such resistances are not mentioned here.

NIFTY would test 4137.50(inevitable - sure) in the short to medium term. So,start buying (Buy here and buy in dips- systemmatic buying recommended)and enjoy profits in the shorter to medium time frame. But profits could be booked at this level. Again long positions could be taken only if NIFTY breaks the high of 4245.30 or if it closes above 4224.25.

Upper Band ->4343.35

Lower Band ->3798.08


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

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