TECHNICAL OUTLOOK, 17 OCTOBER

Nifty (spot) 3269.30



Nifty Intraday trading levels

Today, if Nifty trades above 3350, then it could test 3400. Instead, if it fails to sustain above 3350, then it could test 3200 and below 3200, it could test 3100.


Nifty Trading Strategy for intraday and positional trading

For intraday, the crucial level is 3350. Trade short below this level and trade long above this level till 3400.

Positional traders can initiate shorts if it fails to sustain above 3350 for a target of 3000 and trade long above 3400 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 3500, 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 1500 is crucial for this scrip for the short term. If it sustains above 1500, then it is likely to rally towards 1650 initially.

Instead, if it fails to sustain above 1500 in coming trading sessions, then it is likely to turn bearish and it could decline towards 1200.

Trading Strategy for Reliance

For intraday, the crucial level is 1360. Trade long above these levels and trade short below these levels.

Positional traders can initiate longs if it moves above 1500 for a target of 1650. Initiate shorts if it fails to sustain above 1500 for a target of 1200 initially.



SBI

The crucial level for the short term for this scrip is 1575. If it fails to sustain above 1575, 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 1575, then the short term trend would turn bullish and in the upper side it is likely to move towards 1640 and further upmove is possible only if it moves above 1640.

Trading Strategy for SBI

For Intraday, the crucial level is 1575. Trade long above this level and trade short below this level.

Positional traders can initiate shorts if it fails to sustain above 1575 for a target of 1200. And initiate longs if it sustains above 1575 for a target of 1640.



Acc

The level 560 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 600.

If it fails to sustain above 560, then the trend would turn bearish and in the downside it is likely to decline towards 450 initially.


Trading Strategy for Acc

For intraday, the crucial level is 541. Trade long above this level and be short below this level.

Positional traders can initiate shorts if it fails to sustain above 560 for a target of 450. Initiate longs if it sustains above 560 for a target of 600.





Infosys

The level 1325 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 1400.

Instead, if it fails to sustain above 1325, the short term trend would turn bearish and in the downside it is likely to decline towards 1000 initally.



Trading Strategy for Infosys

For intraday, the crucial level is 1270. Trade long above this level and be short below this level.

Positional traders can initiate shorts if the scrip fails to sustain above 1325 for a target of 1000. Initiate longs if it moves above 1325 for a target of 1400.




M&M

The crucial level for the scrip in the short term is 485. The trend would remain bearish for this scrip if it sustains below 485 and in the down side, it could test 380 initially.

If the scrip sustains above 485 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 530.

Trading Strategy for M&M

For intraday, the crucial level is 457. Trade long above this level and be short below this level.

Positional traders can initiate longs if the level 485 is broken in the upside. Short if it fails to sustain above 485 for a target of 380.




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