NIFTY Outlook for 5th Jan 2009

Last week, I envisaged a drop on the NIFTY index to about 2767. The lowest it actually got to was 2812.9 which is off by about 46 points. Not too bad but can do better.

For Monday and the following days, I confess I'm not very confident about a sensible projection. I would however, be a bit cautious about further bullishness. Looking at the channel that it is trading in since the low of Nov 20th, there could be room for a bit more of a rise. Or the market may as well fall from here.

I have had to use a slightly unusual factor setting to obtain this channel. And that contributes to my uncertain views about NIFTY. Good luck anyway.