TECHNICAL OUTLOOK, 16 DECEMBER

D Sathia Moorthy


Nifty (spot) 2981.20



Nifty Intraday trading levels

Today, if Nifty trades below 2990, then it could test 2880 and below this level it could test 2800. Instead, if it trades above 2990, then it could test 3050.


Nifty Trading Strategy for intraday and positional trading

For intraday, the crucial level is 2990. 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 3050 for a target of 3250 with a stop at 3000.



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 1350 is crucial for this scrip for the short term. If it sustains above 1350, then it is likely to rally towards 1400.

Instead, if it fails to sustain above 1350 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 1350. Trade long above these levels and trade short below these levels.

Positional traders can initiate longs if it moves above 1350 for a target of 1400. Initiate shorts if it fails to sustain above 1350 for a target of 1000 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 1000 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 1230. 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 1000. And initiate longs if it sustains above 1230 for a target of 1300.



Infosys (spot)

The level 1150 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 1200.

If it fails to sustain above 1150, 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 1110. Trade long above this level and be short below this level.

Positional traders can initiate shorts if it fails to sustain above 1150 for a target of 1000. Initiate longs if it sustains above 1150 for a target of 1200.





Reliance Capital (spot)

The level 580 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 660.

Instead, if it fails to sustain above 580, the short term trend would turn bearish and in the downside it is likely to decline towards 400 initially.



Trading Strategy for Reliance capital

For intraday, the crucial level is 540. Trade long above this level and be short below this level.

Positional traders can initiate shorts if the scrip fails to sustain above 580 for a target of 400. Initiate longs if it sustains above 580 for a target of 660.




DLF (spot)

The crucial level for the scrip in the short term is 305. The trend would remain bearish for this scrip if it sustains below 305 and in the down side, it could test 200 initially.

If the scrip sustains above 305, then the scrip is likely to turn bullish in the short term and in the upper side it could rally towards 340.


Trading Strategy for DLF

For intraday, the crucial level is 286. Trade long above this level and be short below this level.

Positional traders can initiate longs if the level 305 is broken in the upside for a target of 340. Short if it fails to sustain above 305 for a target of 200.


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