TECHNICAL OUTLOOK, 26 NOVEMBER

D Sathia Moorthy



Nifty (spot) 2654.00



Nifty Intraday trading levels

Today, if Nifty trades below 2600, then it could test 2520 and below this level, it could test 2450. Instead, if it sustains above 2600, then it could test 2700.


Nifty Trading Strategy for intraday and positional trading

For intraday, the crucial level is 2600. Trade short below this level and trade long above this level.

Positional traders can initiate shorts if it fails to sustain above 2700 for a target of 2200 and trade long above 2700 for a target of 2800.



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 2000 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.


The level 2000, is crucial for short term in the downside. If the level is held a short term bottom is possible. If not, Nifty is likely to decline further steeply.



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 1130 is crucial for this scrip for the short term. If it sustains above 1130, then it is likely to rally towards 1220.

Instead, if it fails to sustain above 1130 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 1040. Trade long above these levels and trade short below these levels.

Positional traders can initiate longs if it moves above 1130 for a target of 1220. Initiate shorts if it fails to sustain above 1130 for a target of 900 initially.



SBI (spot)

The crucial level for the short term for this scrip is 1120. If it fails to sustain above 1120, 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 1120, then the short term trend would turn bullish and in the upper side it is likely to move towards 1240.


Trading Strategy for SBI

For Intraday, the crucial level is 1060. Trade long above this level and trade short below this level.

Positional traders can initiate shorts if it fails to sustain above 1120 for a target of 900. And initiate longs if it sustains above 1120 for a target of 1240.



Infosys (spot)

The level 1250 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 1310.

If it fails to sustain above 1250, 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 1250 for a target of 1000. Initiate longs if it sustains above 1250 for a target of 1310.





Tata Steel (spot)

The level 165 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 185.

Instead, if it fails to sustain above 165, the short term trend would turn bearish and in the downside it is likely to decline towards 125 initially.



Trading Strategy for Tata Steel

For intraday, the crucial level is 150. Trade long above this level and be short below this level.

Positional traders can initiate shorts if the scrip fails to sustain above 165 for a target of 125. Initiate longs if it sustains above 165 for a target of 185.




Icici Bank (spot)

The crucial level for the scrip in the short term is 330. The trend would remain bearish for this scrip if it sustains below 330 and in the down side, it could test 250 initially.

If the scrip sustains above 330, 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 Icici Bank

For intraday, the crucial level is 330. Trade long above this level and be short below this level.

Positional traders can initiate longs if the level 330 is broken in the upside for a target of 370. Short if it fails to sustain above 330 for a target of 250.



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