TECHNICAL OUTLOOK, 11 DECEMBER

D Sathia Moorthy



Nifty (spot) 2928.25



Nifty Intraday trading levels

Today, if Nifty trades above 2900, then it could test 3000 and above this level it could test 3050. Instead, if it trades below 2900, then it could test 2850 and below this level it could test 2750.



Nifty Trading Strategy for intraday and positional trading

For intraday, the crucial level is 2900. Trade short below this level and trade long above this level.

Positional traders can initiate shorts if it fails to sustain above 3050 for a target of 2500 with a stop at 3100 and trade long above 2850 for a target of 3050 with a stop at 2780.



Short term Technical View of Nifty

The level 2850 is crucial in the short term in the downside. If it sustains above this level then it is likely to test 3050.

The level 3050 is crucial in the short term in the upside. As long as it stays below this level, it is likely to decline to 2500 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 1270 is crucial for this scrip for the short term. If it sustains above 1270, then it is likely to rally towards 1350.

Instead, if it fails to sustain above 1270 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 1270. Trade long above these levels and trade short below these levels.

Positional traders can initiate longs if it moves above 1270 for a target of 1350. Initiate shorts if it fails to sustain above 1270 for a target of 900 initially.



SBI (spot)

The crucial level for the short term for this scrip is 1260. If it fails to sustain above 1260, 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 1260, then the short term trend would turn bullish and in the upper side it is likely to move towards 1320.


Trading Strategy for SBI

For Intraday, the crucial level is 1175. Trade long above this level and trade short below this level.

Positional traders can initiate shorts if it fails to sustain above 1260 for a target of 900. And initiate longs if it sustains above 1260 for a target of 1320.



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 1250.

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 1250.





Rpl (spot)

The level 82 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 95.

Instead, if it fails to sustain above 82, the short term trend would turn bearish and in the downside it is likely to decline towards 40 initially.



Trading Strategy for Rpl

For intraday, the crucial level is 78. Trade long above this level and be short below this level.

Positional traders can initiate shorts if the scrip fails to sustain above 82 for a target of 95. Initiate longs if it sustains above 82 for a target of 95.




Satyam Computers (spot)

The crucial level for the scrip in the short term is 250. The trend would remain bearish for this scrip if it sustains below 250 and in the down side, it could test 190 initially.

If the scrip sustains above 250, then the scrip is likely to turn bullish in the short term and in the upper side it could rally towards 280.


Trading Strategy for Satyam Computers

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

Positional traders can initiate longs if the level 250 is broken in the upside for a target of 280. Short if it fails to sustain above 250 for a target of 190.


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