TECHNICAL OUTLOOK, 20 OCTOBER

Nifty (spot) 3074.35



Nifty Intraday trading levels

Today, if Nifty trades below 3100, then it could test 3000 and below 3000, it could test 2800. Instead, if it sustains above 3100, then it could test 3200.

Nifty Trading Strategy for intraday and positional trading

For intraday, the crucial level is 3100. Trade short below this level and trade long above this level till 3200.

Positional traders can initiate shorts if it fails to sustain above 3100 for a target of 2800 and trade long above 3100 for a target of 3200.



Short term Technical View of Nifty


The level 3350 is crucial in the short term. If it fails to sustain above 3350, then a decline to 2600 levels is likely.

Instead, if Nifty moves above 3350, then it is likely to rally to 3500.


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 (spot)

The level 1330 is crucial for this scrip for the short term. If it sustains above 1330, then it is likely to rally towards 1380.

Instead, if it fails to sustain above 1330 in coming trading sessions, then it is likely to turn bearish and it could decline towards 1000.

Trading Strategy for Reliance

For intraday, the crucial level is 1300. Trade long above these levels and trade short below these levels.

Positional traders can initiate longs if it moves above 1330 for a target of 1380. Initiate shorts if it fails to sustain above 1330 for a target of 1000.



SBI (spot)

The crucial level for the short term for this scrip is 1450. If it fails to sustain above 1450, 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 1450, then the short term trend would turn bullish and in the upper side it is likely to move towards 1550.

Trading Strategy for SBI

For Intraday, the crucial level is 1420. Trade long above this level and trade short below this level.

Positional traders can initiate shorts if it fails to sustain above 1450 for a target of 1200. And initiate longs if it sustains above 1450 for a target of 1550.



Reliance Capital (spot)

The level 610 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 700.

If it fails to sustain above 610, then the trend would turn bearish and in the downside it is likely to decline towards 450 initially.


Trading Strategy for Reliance Capital

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

Positional traders can initiate shorts if it fails to sustain above 610 for a target of 450. Initiate longs if it sustains above 610 for a target of 700.





Infosys (spot)

The level 1250 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 1350.

Instead, if it fails to sustain above 1350, 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 1220. Trade long above this level and be short below this level.

Positional traders can initiate shorts if the scrip fails to sustain above 1250 for a target of 1000. Initiate longs if it moves above 1250 for a target of 1350.




Rpl (spot)

The crucial level for the scrip in the short term is 107. The trend would remain bearish for this scrip if it sustains below 107 and in the down side, it could test 80 initially.

If the scrip sustains above 107, then the scrip is likely to turn bullish in the short term and in the upper side it could rally towards 117.

Trading Strategy for Rpl

For intraday, the crucial level is 107. Trade long above this level and be short below this level.

Positional traders can initiate longs if the level 107 is broken in the upside. Short if it fails to sustain above 107 for a target of 80.




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