Mar 6,2007

NIFTY OUTLOOK (Based on TECHNICAL ANALYSIS)
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NIFTY close 3576.50. Sensex 12415.04.

NIFTY has signalled a possible intraday low below 3425.15 and a possible close below 3449.40. The time of occurence might not be assessible though.

"Our prefered view is NIFTY should test wednesday's bottom(3674.85)". This was stated in yesterday's post. But the fall was tragic due to the correction in the world markets. The correction has gone beyond preferred view.

NIFTY requires heavy shorts building up in the bottom, to move up further. Weakness prevails still and there are no positive signs yet. But if shorts build up, which may require some consolidation, it might help NIFTY to strengthen.

Absence of periodical correction in the upmove might be the reason for the steep fall in NIFTY.

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, when NIFTY tests the mentioned levels.

Inflation in the economy has started easing. It is a good sign. If inflation is contained beyond certain level it may act as a fundamental impetus that could drive markets up in the weeks or months to come. It may end up in easing the higher interest rates and further boost the growth.

Upper Band -> 4398.45

Lower Band -> 3655.65

NIFTY staying below lower band for longer period is rare scenario. It signifies that market is oversold. It migtht bounce back sure, in the near future.

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

STOCKS TO WATCH
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