TECHNICAL OUTLOOK, 25 SEPTEMBER

Daily Newsletter


Nifty (spot) 4126.90



Nifty Intraday trading levels

Today, if Nifty trades below 4200, then it could test 4100 and below 4100, it could test 4050. Instead, if it trades above 4200, then it could test 4240.



Nifty Trading Strategy for intraday and positional trading

For intraday, the crucial level is 4200. Trade short below this level and trade long above this level.

Positional traders can initiate shorts if it fails to sustain above 4200.



Short term Technical View of Nifty

Now, the rally from the low of 3800 to 4305 is being corrected. The most likely level for Nifty to terminate its correction is around 3900-3950 level.

In the upper side, Nifty is likely to turn bullish for short term, if it trades above 4240. Until then the trend would remain bearish.




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



Icici Bank

The levels 625 in the upper side and 560 in the lower are crucial level for this scrip for the short term. If it fails to sustain above 625, then it is likely to decline towards 560.

Like wise, if it fails to move below 560 in coming trading sessions, then it is likely to turn bullish and it could rally from these levels towards 670 initially.


Trading Strategy for Icici Bank

For intraday, the crucial level is 610. Trade long above this level and trade short below this level.

Positional traders can initiate shorts if it fails to sustain above 625 for a target of 560. Initiate longs if it fails to move below 560 for a target 670.



SBI

The crucial levels for the short term for this scrip are 1570 and 1450. If it sustains above 1570, then it is likely to turn bullish and in the upper side it could test 1650.

Instead, if it fails to sustain above 1570, then the short term trend would turn bearish and in the downside it is likely to decline towards 1450.

Trading Strategy for SBI

For Intraday, the crucial level is 1530. Trade long above this level and trade short below this level.

Positional traders can initiate longs if it fails to move below 1450. And initiate shorts if it sustains below 1570.



Sterlite

The level 535 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 650.

If it fails to sustain above 535, then the trend would turn bearish and in the downside it is likely to decline towards 430.


Trading Strategy for Sterlite

For intraday, the crucial level is 495. Trade long above this level and be short below this level.

Positional traders can initiate shorts if it fails to sustain above 535. Initiate longs if it fails to move below 430 for a target of 650.





Tcs

The level 735 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 to 790.

Instead, if it fails to trade above 735, the short term trend would turn bearish and in the downside it is likely to decline towards 670.



Trading Strategy for Tcs

For intraday, the crucial level is 735. Trade long above this level and be short below this level.

Positional traders can initiate shorts if the scrip fails to sustain above 735. Initiate longs if it fails to move below 150.




TataMotors

The crucial levels for the scrip in the short term are 410 and 385. The trend would remain bearish for this scrip if it sustains below 410 and in the down side, if it moves below 385, then it could decline towards 350.

If the level 350 is not violated in the short term, then the scrip is likely to make a major bottom around this level.


Trading Strategy for Tatamotors

For intraday, the crucial level is 385. Trade long above this level and be short below this level.

Positional traders can initiate longs if the level 385 is held in coming trading sessions. Short if it fails to sustain above 410 for a target of 350.






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