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Saturday, February 03, 2007
Rally may continue
The market is likely to continue its rally as most results reported by India Inc were strong.
The next key event that the market will be closely watching is the Union-budget 2007. A pre-budget rally is expected.
But worries that inflation will lead to a further tightening of the monetary policy to follow this week's rate rise have been heightened by data showing annual inflation rate rising back above 6%, to just below a two-year high in mid-January.
Technically, the Nifty has breached the resistance of 4,168 and has moved above it. It is now likely to test another major resistance of 4,200. On crossing this point, the initial target is pegged in the range of 4,230 - 4,260 range. On the lower side, Nifty has strong support at 4,120 and 4,080 levels.
FAG Bearings India, Patni Computer Systems, ELGI Equipments and Rain Calcining will be declaring results in the coming week.