TECHNICAL OUTLOOK, 16 OCTOBER

Nifty (spot) 3338.40



Nifty Intraday trading levels

Today, if Nifty trades below 3200, then it could test 3100. Instead, if it sustains above 3200, then it could test 3300.


Nifty Trading Strategy for intraday and positional trading

For intraday, the crucial level is 3200. Trade short below this level and trade long above this level.

Positional traders can initiate shorts if it fails to sustain above 3300 for a target of 3000 and trade long above 3350 for a target of 3450.



Short term Technical View of Nifty


The level 3500 is crucial in the short term. If it fails to sustain above 3800, then a decline to 3000 levels is likely.

Instead, if Nifty moves above 3500, then it is likely to rally from these levels to 3800 initially.


Medium term outlook of Nifty dated on 14 October 2008

The medium term outlook of Nifty would remain bearish if it fails to sustain above 3800. 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 1550 is crucial for this scrip for the short term. If it sustains above 1550, then it is likely to rally towards 1650 initially.

Instead, if it fails to sustain above 1550 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 level is 1510. Trade long above these levels and trade short below these levels.

Positional traders can initiate longs if it moves above 1550 for a target of 1650. Initiate shorts if it fails to sustain above 1550 for a target of 1400 initially and then 1200.



SBI

The crucial level for the short term for this scrip is 1410. If it fails to sustain above 1410, then it is likely to turn bearish and in the down side it could test 1200 in coming trading session.

Instead, if it sustains above 1410, then the short term trend would turn bullish and in the upper side it is likely to move towards 1500.

Trading Strategy for SBI

For Intraday, the crucial level is 1450. Trade long above this level and trade short below this level.

Positional traders can initiate shorts if it fails to sustain above 1410 for a target of 1200. And initiate longs if it sustains above 1410.



Rcom

The level 230 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 300.

If it fails to sustain above 230, then the trend would turn bearish and in the downside it is likely to decline towards 150 initially.


Trading Strategy for Rcom

For intraday, the crucial level is 230. Trade long above this level and be short below this level.

Positional traders can initiate shorts if it fails to sustain above 230 for a target of 150. Initiate longs if it sustains above 230 for a target of 300.





Reliance Capital

The level 700 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 850.

Instead, if it fails to sustain above 700, the short term trend would turn bearish and in the downside it is likely to decline towards 500.



Trading Strategy for Reliance Capital

For intraday, the crucial level is 700. Trade long above this level and be short below this level.

Positional traders can initiate shorts if the scrip fails to sustain above 700 for a target of 500. Initiate longs if it fails to move below 700 for a target of 850.




Bharti Tele

The crucial level for the scrip in the short term is 690. The trend would remain bearish for this scrip if it sustains below 690 and in the down side, it could test 500.

If the scrip sustains above 690 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 760 initially.

Trading Strategy for Bharti Tele

For intraday, the crucial level is 690. Trade long above this level and be short below this level.

Positional traders can initiate longs if the level 690 is held. Short if it fails to sustain above 690 for a target of 500.




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