TECHNICAL OUTLOOK 16 NOVEMBER

Nifty 3876.30

As mentioned yesterday, if Nifty moves above 3875 and sustains above that level, then it is likely to test 3940-3950 level in coming trading sessions. Nifty is likely to see corrective movement around this level.

Instead, if it fails to sustain above 3850, in the downside, it could test 3820.

Today, If Nifty sustains above 3865, then it is likely to test 3895 and above 3895,Nifty could test 3910.


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Reliance 1259.90

The short term trend is looking bullish and it has potential of testing 1350 in coming trading sessions. Buy on decline with a stop at 1220.

If it sustains above 1250, then it is likely to bounce from current levels.

It is likely to struggle around 1300, before moving towards 1350.

In case if it trades below 1220, in the downside, it could test 1180. Even then, the bullish view would remain valid.

Long term investors can continue to hold this scrip with a stop at 1100 for good upside potential in coming months.



DELIVERY CALLS

Tata Elxsi (I) 255.00

The scrip is in long term bull trend and it has good potential in the long run.

In short term, chart indicates a rally towards 320 in coming weeks. Buy on decline with a stop at 220.



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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