TECHNICAL OUTLOOK, 3 OCTOBER

Nifty (spot) 3950.75



Nifty Intraday trading levels

Today, if Nifty trades below 3925, then it could test 3880 and below 3880, it could test 3850. Instead, if it trades above 3825, then it could test 4000 and above 4000, it could test 4050.



Nifty Trading Strategy for intraday and positional trading

For intraday, the crucial level is 3925. Trade short below this level and trade long above this level.

Positional traders can initiate longs if it sustains above 3850 for a target of 4050.



Short term Technical View of Nifty

Though Nifty broke 3780 in the downside, it immediately recovered to stay above this level, thus giving a clue, that the level 3780 is crucial for the short term in the downside.

So, in the short term, as long as Nifty sustains above this level, Nifty is likely to rally towards 4400 immediately. Instead, if it fails to hold above 3780, then it could decline towards 3600.


Medium term outlook of Nifty dated on 02 July 2008

The medium term outlook of Nifty has turned bullish and it is likely to move towards 5500 by this year end and this view holds good as long as Nifty stays above 3600.





Long term outlook of Nifty dated on 02 July 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 3600.





Short term trading calls of Stocks for spot market



Reliance

The levels 1920 and 1850 are crucial for this scrip for the short term. If it sustains above 1920, then it is likely to rally towards 2100.

Instead, if it fails to sustain above 1920 in coming trading sessions, then it is likely to turn bearish and it could decline towards 1850. Below 1850, it could decline towards 1800.


Trading Strategy for Reliance

For intraday, the crucial level is 1920. Trade long above this level and trade short below this level.

Positional traders can initiate longs if it fails to move below 1850 for a target of 2100. Initiate shorts if it fails to sustain above 1850 for a target of 1800.



Reliance Infra

The crucial level for the short term for this scrip is 850. If it sustains above 850, then it is likely to turn bullish and in the upper side it could test 950 in coming trading sessions.

Instead, if it fails to sustain above 850, then the short term trend would turn bearish and in the downside it is likely to decline towards 700.

Trading Strategy for Reliance Infra

For Intraday, the crucial level is 760. Trade long above this level and trade short below this level.

Positional traders can initiate longs if it fails to move below 700. And initiate shorts if it sustains below 850.



Rcom

The level 365 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 390 and above 390, it could test 440.

If it fails to sustain above 365, then the trend would turn bearish and in the downside it is likely to decline towards 320.


Trading Strategy for Rcom

For intraday, the crucial level is 350. Trade long above this level and be short below this level.

Positional traders can initiate shorts if it fails to sustain above 365. Initiate longs if it fails to move below 320 for a target of 390.





Reliance Capital

The level 1100 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 1300.

Instead, if it fails to trade above 1100, the short term trend would turn bearish and in the downside it is likely to decline towards 1000.



Trading Strategy for Relcapital

For intraday, the crucial level is 1150. Trade long above this level and be short below this level.

Positional traders can initiate shorts if the scrip fails to sustain above 1100. Initiate longs if it fails to move below 1100.




SBI

The crucial level for the scrip in the short term is 1420. The trend would remain bearish for this scrip if it sustains below 1420 and in the down side, it could test 1300.

If the level 1420 is not 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 1550 initially.

Trading Strategy for Sbi

For intraday, the crucial level is 1460. Trade long above this level and be short below this level.

Positional traders can initiate longs if the level 1420 is held in coming trading sessions. Short if it fails to sustain above 1420 for a target of 1300.


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