TECHNICAL OUTLOOK, 9 JULY

DAILY NEWSLETTER


D Sathia Moorthy


Click here for Rolta Outlook


Nifty 3988.55


Short term



A move above 4100 would impart short term bullishness in the market and it could test 4500 in the upside. Nifty has started making expanding pattern with each leg making a higher bottom. Now the last downside leg made a low of 3896.

So, unless this level is violated, the short term trend in the market is likely to be bullish and it is likely that Nifty is likely to move above 4100 in coming trading sessions.


The last crucial level for the Nifty is 3600-3775. As long as Nifty stays above this level, the long term and Medium term bull trend of the market would be intact.


As long as Nifty sustains above this level, long term trend of the Market would be bullish and it is likely to exceed the high of 6350 in coming years.




Extreme Short term

In the extreme short term, the level 3900 is crucial. The trend is likely to remain bullish as long as it stays above this level.



Nifty Intraday levels

Today, if Nifty trades above 4020, then it could test 4120 and above this level, it is likely to test 4180. Instead, if it trades below 3950, then it could test 3920.




Trading Strategy for Nifty

Now the crucial level is 3900. Be long above this level and be short below this level.






Medium term outlook of Nifty dated on 02 July 2008

The medium term outlook of Nifty has turned bullish and it is likely to move towards 5500 by this year end and this view holds good as long as Nifty stays above 3600.



Long term outlook of Nifty dated on 02 July 2008

The long term outlook of Nifty is looking bullish and it seems that Nifty is in the middle of this bull run. So, the bull run is likely to continue for another 4 to 5 years and this view holds good as long as Nifty stays above 3600.




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