TECHNICAL OUTLOOK, 19 NOVEMBER

D Sathia Moorthy


Nifty (spot) 2683.15



Nifty Intraday trading levels

Today, if Nifty trades below 2710, then it could test 2650 and below this level, it could test 2500. Instead, if it sustains above 2710, then it could test 2770.



Nifty Trading Strategy for intraday and positional trading

For intraday, the crucial level is 2710. Trade short below this level and trade long above this level.

Positional traders can initiate shorts if it fails to sustain above 2770 for a target of 2500 and trade long above 2770 for a target of 2900.



Short term Technical View of Nifty


The level 2900 is crucial in the short term. As long as it stays below this level, it is likely to decline to 2500 initially.

The present rally from the low of 2250 seems to be corrective, so, once the rally peaks out, it is likely to be followed by a fall towards 2200.



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 1180 is crucial for this scrip for the short term. If it sustains above 1180, then it is likely to rally towards 1250.

Instead, if it fails to sustain above 1180 in coming trading sessions, then it is likely to turn weak and it could decline towards 1000 initially.

Trading Strategy for Reliance

For intraday, the crucial level is 1155. Trade long above these levels and trade short below these levels.

Positional traders can initiate longs if it moves above 1180 for a target of 1250. Initiate shorts if it fails to sustain above 1180 for a target of 1000 initially.



SBI (spot)

The crucial level for the short term for this scrip is 1140. If it fails to sustain above 1140, then it is likely to turn bearish and in the down side it could test 1000 in coming trading session.

Instead, if it sustains above 1140, then the short term trend would turn bullish and in the upper side it is likely to move towards 1220.


Trading Strategy for SBI

For Intraday, the crucial level is 1100. Trade long above this level and trade short below this level.

Positional traders can initiate shorts if it fails to sustain above 1140 for a target of 1000. And initiate longs if it sustains above 1140 for a target of 1220.



Infosys (spot)

The level 1200 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 1260.

If it fails to sustain above 1200, then the trend would turn bearish and in the downside it is likely to decline towards 1000 initially.


Trading Strategy for Infosys

For intraday, the crucial level is 1170. Trade long above this level and be short below this level.

Positional traders can initiate shorts if it fails to sustain above 1200 for a target of 1000. Initiate longs if it sustains above 1200 for a target of 1260.





Bank of Baroda (spot)

The level 280 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 310.

Instead, if it fails to sustain above 280, the short term trend would turn bearish and in the downside it is likely to decline towards 200 initially.



Trading Strategy for Bank of Baroda

For intraday, the crucial level is 268. Trade long above this level and be short below this level.

Positional traders can initiate shorts if the scrip fails to sustain above 280 for a target of 200. Initiate longs if it sustains above 280 for a target of 310.




Gail (spot)

The crucial level for the scrip in the short term is 210. The trend would remain bearish for this scrip if it sustains below 210 and in the down side, it could test 150 initially.

If the scrip sustains above 210, then the scrip is likely to turn bullish in the short term and in the upper side it could rally towards 240.


Trading Strategy for Gail

For intraday, the crucial level is 195. Trade long above this level and be short below this level.

Positional traders can initiate longs if the level 210 is broken in the upside for a target of 240. Short if it fails to sustain above 210 for a target of 150.




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