TECHNICAL OUTLOOK, 12 DECEMBER

D Sathia Moorthy


Nifty (spot) 2920.15



Nifty Intraday trading levels

Today, if Nifty fails to trade above 2950, then it could test 2850 and below this level it could test 2740. Instead, if it trades above 2950, then it could test 3000.


Nifty Trading Strategy for intraday and positional trading

For intraday, the crucial level is 2950. Trade short below this level and trade long above this level.

Positional traders can initiate shorts if it fails to sustain above 2850 for a target of 2500 with a stop at 2950 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 1310 is crucial for this scrip for the short term. If it sustains above 1310, then it is likely to rally towards 1350.

Instead, if it fails to sustain above 1310 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 1310. Trade long above these levels and trade short below these levels.

Positional traders can initiate longs if it moves above 1310 for a target of 1350. Initiate shorts if it fails to sustain above 1310 for a target of 900 initially.



SBI (spot)

The crucial level for the short term for this scrip is 1230. If it fails to sustain above 1230, 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 1230, then the short term trend would turn bullish and in the upper side it is likely to move towards 1300.


Trading Strategy for SBI

For Intraday, the crucial level is 1205. Trade long above this level and trade short below this level.

Positional traders can initiate shorts if it fails to sustain above 1230 for a target of 900. And initiate longs if it sustains above 1230 for a target of 1300.



Infosys (spot)

The level 1170 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 1170, 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 1145. Trade long above this level and be short below this level.

Positional traders can initiate shorts if it fails to sustain above 1170 for a target of 1000. Initiate longs if it sustains above 1170 for a target of 1250.





Rcom (spot)

The level 245 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 280.

Instead, if it fails to sustain above 245, the short term trend would turn bearish and in the downside it is likely to decline towards 180 initially.



Trading Strategy for RCom

For intraday, the crucial level is 245. Trade long above this level and be short below this level.

Positional traders can initiate shorts if the scrip fails to sustain above 245 for a target of 480. Initiate longs if it sustains above 245 for a target of 280.




Reliance capital (spot)

The crucial level for the scrip in the short term is 520. The trend would remain bearish for this scrip if it sustains below 520 and in the down side, it could test 400 initially.

If the scrip sustains above 520, then the scrip is likely to turn bullish in the short term and in the upper side it could rally towards 580.


Trading Strategy for Reliance Capital

For intraday, the crucial level is 500. Trade long above this level and be short below this level.

Positional traders can initiate longs if the level 520 is broken in the upside for a target of 580. Short if it fails to sustain above 520 for a target of 400.


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