TECHNICAL OUTLOOK, 20 OCTOBER

Nifty (spot) 3122.80



Nifty Intraday trading levels

Today, if Nifty trades below 3180, then it could test 3050 and below 3050, it could test 2950. Instead, if it sustains above 3180, then it could test 3250.

Nifty Trading Strategy for intraday and positional trading

For intraday, the crucial level is 3180. Trade short below this level and trade long above this level till 3250.

Positional traders can initiate shorts if it fails to sustain above 3250 for a target of 2800 and trade long above 3250 for a target of 3350.



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 1380 is crucial for this scrip for the short term. If it sustains above 1380, then it is likely to rally towards 1440.

Instead, if it fails to sustain above 1440 in coming trading sessions, then it is likely to turn bearish and it could decline towards 1200 initially.

Trading Strategy for Reliance

For intraday, the crucial level is 1340. Trade long above these levels and trade short below these levels.

Positional traders can initiate longs if it moves above 1380 for a target of 1440. Initiate shorts if it fails to sustain above 1380 for a target of 1200 initially.



SBI (spot)

The crucial level for the short term for this scrip is 1480. If it fails to sustain above 1480, 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 1480, 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 1480. Trade long above this level and trade short below this level.

Positional traders can initiate shorts if it fails to sustain above 1480 for a target of 1200. And initiate longs if it sustains above 1480 for a target of 1550.



RCom (spot)

The level 255 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 255, 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 245. Trade long above this level and be short below this level.

Positional traders can initiate shorts if it fails to sustain above 255 for a target of 150. Initiate longs if it sustains above 255 for a target of 300.





Infosys (spot)

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 1450.

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 1320. 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 moves above 1350 for a target of 1450.




Satyam (spot)

The crucial level for the scrip in the short term is 300. The trend would remain bearish for this scrip if it sustains below 300 and in the down side, it could test 200 initially.

If the scrip sustains above 300, then the scrip is likely to turn bullish in the short term and in the upper side it could rally towards 370.

Trading Strategy for Satyam

For intraday, the crucial level is 300. Trade long above this level and be short below this level.

Positional traders can initiate longs if the level 300 is broken in the upside. Short if it fails to sustain above 300 for a target of 200.




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