TECHNICAL OUTLOOK, 31 OCTOBER

Nifty (spot) 2697.05



Nifty Intraday trading levels

Today, if Nifty trades above 2750, then it could test 2800 and above 2800, it could test 2900. Instead, if it sustains below 2750, then it could test 2600 and below 2600, it could test 2550.


Nifty Trading Strategy for intraday and positional trading

For intraday, the crucial level is 2750. Trade short below this level and trade long above this level.

Positional traders can initiate shorts if it fails to sustain above 2750 for a target of 2500 and trade long above 2750 for a target of 2800 and above 2800, hold your longs till 2900.



Short term Technical View of Nifty


The level 2750 is crucial in the short term. If it fails to sustain above 2750, then a decline to 2200 levels is likely.

Instead, if Nifty moves above 2750, then it is likely to rally to 2950-3000.

As long as Nifty trades below 3050, the short term trend of Nifty would remain bearish with a downside target of 2000.


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 3100. Nifty is likely to bottom out in the medium term at 2000-2200 levels in coming months and if it fails to sustain above this level, then it is likely to decline below 2000 levels.





Long term outlook of Nifty dated on 13 October 2008

The long term outlook of Nifty is looking bearish and it seems that Nifty is likely to bottom out in 6 months to 1 year if the bottom forms around 2000. If the level 2000 is not held, then Nifty is likely to take more than 1 year to bottom out.





Short term trading calls of Stocks for spot market



Reliance (spot)

The level 1220 is crucial for this scrip for the short term. If it sustains above 1220, then it is likely to rally towards 1300.

Instead, if it fails to sustain above 1220 in coming trading sessions, then it is likely to turn weak and it could decline towards 800 initially.

Trading Strategy for Reliance

For intraday, the crucial level is 1220. Trade long above these levels and trade short below these levels.

Positional traders can initiate longs if it moves above 1220 for a target of 1300. Initiate shorts if it fails to sustain above 1220 for a target of 800 initially.



SBI (spot)

The crucial level for the short term for this scrip is 1175. If it fails to sustain above 1175, then it is likely to turn bearish and in the down side it could test 800 in coming trading session.

Instead, if it sustains above 1175, then the short term trend would turn bullish and in the upper side it is likely to move towards 1270.

Trading Strategy for SBI

For Intraday, the crucial level is 1120. Trade long above this level and trade short below this level.

Positional traders can initiate shorts if it fails to sustain above 1175 for a target of 800. And initiate longs if it sustains above 1175 for a target of 1280.



ONGC (spot)

The level 700 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 760.

If it fails to sustain above 700, then the trend would turn bearish and in the downside it is likely to decline towards 500 initially.


Trading Strategy for ONGC

For intraday, the crucial level is 680. Trade long above this level and be short below this level.

Positional traders can initiate shorts if it fails to sustain above 700 for a target of 500. Initiate longs if it sustains above 700 for a target of 760.





Bharti Airtel (spot)

The level 680 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 750.

Instead, if it fails to sustain above 680, the short term trend would turn bearish and in the downside it is likely to decline towards 500 initially.



Trading Strategy for Bharti

For intraday, the crucial level is 635. Trade long above this level and be short below this level.

Positional traders can initiate shorts if the scrip fails to sustain above 680 for a target of 500. Initiate longs if it sustains above 680 for a target of 750.




ICICI Bank (spot)

The crucial level for the scrip in the short term is 395. The trend would remain bearish for this scrip if it sustains below 395 and in the down side, it could test 280.

If the scrip sustains above 395, then the scrip is likely to turn bullish in the short term and in the upper side it could rally towards 450.


Trading Strategy for ICICI Bank

For intraday, the crucial level is 360. Trade long above this level and be short below this level.

Positional traders can initiate longs if the level 395 is broken in the upside for a target of 450. Short if it fails to sustain above 395 for a target of 280.




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