TECHNICAL OUTLOOK, 19 SEPTEMBER

Daily Newsletter


D Sathia Moorthy


Nifty (spot) 4038.15



Nifty Intraday trading levels

Today, if Nifty trades above 4150, then it could test 4220. Instead, if it fails to sustain above 4150, then it could decline towards 4050.



Nifty Trading Strategy for intraday and positional trading

For intraday, the crucial level is 4150. Trade short below this level and trade long above this level.

Positional traders can initiate shorts if it fails to sustain above 4150. Initiate longs if it sustains above 4150.




Short term Technical View of Nifty

Now, the level 4220 in the upper side is crucial in the short term. As long as it trades below this level, the short term trend is likely to remain bearish. If it trades above 4220 then it could test 4350.

As the market has bounced from a level very closer to its low of 3790, without violating it, chances for a strong rally from now onwards is likely if the level 4350 is broken in the upside. Until then Nifty is vulnerable for a downside.



Extreme Short term technical view of Nifty

In the extreme short term, the level 4220 is crucial.




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.





Short term trading calls of Stocks for spot market



DLF

The level 365 is crucial in the short term for this scrip. If it sustains above this level, then it is likely to turn bullish. In the upper side the level 450 is crucial. If it moves above this level, then it is likely to rally further towards 600.

Instead, if it fails to move above 450 or if it fails to sustain above 365, then in the downside it is likely to decline towards 250.


Trading Strategy for DLF

For intraday, the crucial level is 410. Trade long above this level and trade short below this level.

Positional traders can initiate shorts if it fails to sustain above 365 for a target of 250. Initiate longs if it sustains above 365.



L&T

The crucial level for the short term for this scrip is 2640. If it sustains above this level, then it is likely to turn bullish and in the upper side, if it moves above 2750, then it is likely to rally further towards 3000.

Instead, if it fails to sustain above 2640, then the short term trend would turn bearish and in the downside it is likely to decline towards 2450.

Trading Strategy for L&T

For Intraday, the crucial level is 2640. Trade long above this level and trade short below this level.

Positional traders can initiate shorts if it fails to move below 2640. And initiate longs if it sustains below 2640.



Tata Motors

The level 440 is crucial in the short term. If the scrip trades above this level, the short term would turn bullish and in the upper side it could test 500.

If it fails to sustain above 440, trend would turn bearish and in the downside it is likely to decline towards 400.


Trading Strategy for Tata Motors

For intraday, the crucial level is 415. Trade long above this level and be short below this level.

Positional traders can initiate shorts if it fails to sustain above 440. Initiate longs if it sustains above 415 for a target of 440.





Reli infra

The level 940 is crucial for this scrip in the short term. If it sustains above this level, then it is likely to see a rally from these levels.

Instead, if it fails to trade above 940, the short term trend would turn bearish and in the downside it is likely to decline towards 850. In the downside, the level 850 is crucial if it sustains above this level, then it is likely to move towards 940.


Trading Strategy for Reli infra

For intraday, the crucial level is 850. Trade long above this level and be short below this level.

Positional traders can initiate shorts if the scrip fails to move above 940. Initiate longs if it sustains above 850.




Tata Steel

The crucial level for the scrip in the short term is 440 and 540. The trend would turn bullish for this scrip if it moves above 540.

Instead, if it fails to move above 540, the short term trend would turn bearish and in the downside it is likely to decline towards 380.



Trading Strategy for Tata Steel

For intraday, the crucial level is 460. Trade long above this level and be short below this level.

Positional traders can initiate longs if the level 440 is held for a target of 530. Short if it fails to sustain above 540.