TECHNICAL OUTLOOK, 20 NOVEMBER

D Sathia Moorthy


Nifty (spot) 2635.00



Nifty Intraday trading levels

Today, if Nifty trades below 2675, then it could test 2500 and below this level, it could test 2400. Instead, if it sustains above 2675, then it could test 2770.



Nifty Trading Strategy for intraday and positional trading

For intraday, the crucial level is 2620. Trade short below this level and trade long above this level.

Positional traders can initiate shorts if it fails to sustain above 2675 for a target of 2400 and trade long above 2675 for a target of 2770.



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 2200 initially.

The recent rally from the low of 2250 seems to be corrective and it seems it has peaked out. Now it is likely to decline below 2250 in coming trading sessions.



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 1160 is crucial for this scrip for the short term. If it sustains above 1160, then it is likely to rally towards 1250.

Instead, if it fails to sustain above 1160 in coming trading sessions, then it is likely to turn weak and it could decline towards 900 initially.

Trading Strategy for Reliance

For intraday, the crucial level is 1160. Trade long above these levels and trade short below these levels.

Positional traders can initiate longs if it moves above 1160 for a target of 1250. Initiate shorts if it fails to sustain above 1160 for a target of 900 initially.



SBI (spot)

The crucial level for the short term for this scrip is 1100. If it fails to sustain above 1100, then it is likely to turn bearish and in the down side it could test 900 in coming trading session.

Instead, if it sustains above 1100, then the short term trend would turn bullish and in the upper side it is likely to move towards 1200.


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 1100 for a target of 900. And initiate longs if it sustains above 1100 for a target of 1200.



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 1180. 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.





Satyam Computers (spot)

The level 230 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 260.

Instead, if it fails to sustain above 230, the short term trend would turn bearish and in the downside it is likely to decline towards 150 initially.



Trading Strategy for Satyam

For intraday, the crucial level is 230. Trade long above this level and be short below this level.

Positional traders can initiate shorts if the scrip fails to sustain above 230 for a target of 150. Initiate longs if it sustains above 230 for a target of 260.




BHEL (spot)

The crucial level for the scrip in the short term is 1275. The trend would remain bearish for this scrip if it sustains below 1275 and in the down side, it could test 1000 initially.

If the scrip sustains above 1275, then the scrip is likely to turn bullish in the short term and in the upper side it could rally towards 1400.


Trading Strategy for BHEL

For intraday, the crucial level is 1275. Trade long above this level and be short below this level.

Positional traders can initiate longs if the level 1275 is broken in the upside for a target of 1400. Short if it fails to sustain above 1275 for a target of 1000.




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