TECHNICAL OUTLOOK 08 JANUARY

Nifty 3983.40

Short term trend in Nifty is looking bullish, and it is likely to test 4100 initially in coming trading sessions. And this view holds good as long as Nifty sustains above 3920.

In the extreme short term, if it moves below 3975, it is likely to test 3940-3950 before embarking a rally towards 4050.

Today, if it trades below 3975, it is likely to decline towards 3940-3950 level and would be followed by an up move. Instead, if Nifty sustains above 3995, it is likely to test 4020.


Strategy

Fresh long positions can be initiated on decline with a stop at 3920 or on cross over above 3995 with a stop at 3970.

The next broad stop loss for all longs is 3870.


Full contents of our Daily Newsletter, including short term outlook of Nifty, short term trading calls, and delivery calls are available for paid subscribers. The charges are Rs 2500/- per month.


Medium term Outlook of Nifty (dated 01/11/2006)

The medium term trend in Nifty is looking bullish and it has potential of testing 4200 in coming months. And this view holds good as long as Nifty stays above 3600.

As the expected correction around 3800 level, is taking place as a running sideways correction, the present technical setup of Nifty suggests that there would be no major downside in the immediate future. And also if Nifty doesn’t violate 3600 level, we are likely to see a sharp up move towards the next medium term target in coming months.

Long term Investors can remain invested for the next medium term target of 4200 in coming months with a stop at 3600.



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