TECHNICAL OUTLOOK, 13 OCTOBER

Nifty (spot) 3279.95



Nifty Intraday trading levels

Today, if Nifty trades below 3325, then it could test 3200 and below 3200 it could test 3100. Instead, if it trades above 3325, then it could test 3400.


Nifty Trading Strategy for intraday and positional trading

For intraday, the crucial level is 3325. Trade short below this level and trade long above this level.

Positional traders can initiate longs if it sustains above 3500 for a target of 3800. Trade short below 3500 for a target of 3000.



Short term Technical View of Nifty


The level 3500-3550 is crucial in the short term.If it fails to sustain above 3500-3550, then a decline to 3000 levels is likely.

Instead, if Nifty moves above this level, then it is likely to rally from these levels to 3800 initially.


Medium term outlook of Nifty dated on 13 October 2008

The medium term outlook of Nifty would remain bearish if it fails to sustain above 3500-3550. Nifty is likely to bottom out in the medium term at 2550 levels or 2200 levels in coming months.





Long term outlook of Nifty dated on 13 October 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 2200.







Short term trading calls of Stocks for spot market



Reliance

The level 1580 is crucial for this scrip for the short term. If it sustains above 1580, then it is likely to rally towards 1660 initially.

Instead, if it fails to sustain above 1580 in coming trading sessions, then it is likely to turn bearish and it could decline towards 1400 and below 1400, it has potential of declining towards 1200.

Trading Strategy for Reliance

For intraday, the crucial levels are 1500 and 1580. Trade long above these levels and trade short below these levels.

Positional traders can initiate longs if it moves above 1580 for a target of 1660. Initiate shorts if it fails to sustain above 1580 for a target of 1400.



SBI

The crucial levels for the short term for this scrip are 1250 and 1400. If it fails to sustain above 1400, then it is likely to turn bearish and in the down side it could test 1000 in coming trading sessions.

Instead, if it fails to sustain above 1400, then the short term trend would turn bullish and in the upper side it is likely to move towards 1600.

Trading Strategy for SBI

For Intraday, the crucial level is 1400. Trade long above this level and trade short below this level.

Positional traders can initiate longs if it fails to move below 1250. And initiate shorts if it sustains below 1400.



Satyam

The level 280 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 350.

If it fails to sustain above 280, then the trend would turn bearish and in the downside it is likely to decline towards 200 initially.


Trading Strategy for Satyam

For intraday, the crucial level is 265. Trade long above this level and be short below this level.

Positional traders can initiate longs if it fails to move below 200. Initiate shorts if it fails to sustain above 280 for a target of 200.





Infosys

The level 1350 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 towards 1600.

Instead, if it fails to trade above 1350, the short term trend would turn bearish and in the downside it is likely to decline towards 1000 and a move below 1200 would confirm it.



Trading Strategy for Infosys

For intraday, the crucial level is 1300. Trade long above this level and be short below this level.

Positional traders can initiate shorts if the scrip fails to sustain above 1350 for a target of 1000. Initiate longs if it fails to move below 1200 for a target of 1350.




Tata Motors

The crucial level for the scrip in the short term is 360. The trend would remain bearish for this scrip if it sustains below 360 and in the down side, it could test 200.

If the level 360 is violated in the short term, then the scrip is likely to turn bullish in the short term and in the upper side it could rally towards 450 initially.

Trading Strategy for Tata Motors

For intraday, the crucial level is 310. Trade long above this level and be short below this level.

Positional traders can initiate longs if the level 360 is violated in the upside. Short if it fails to sustain above 360 for a target of 200.




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