TECHNICAL OUTLOOK, 18 DECEMBER

D Sathia Moorthy


Nifty (spot) 2954.35



Nifty Intraday trading levels

Today, if Nifty trades below 2950, then it could test 2800. 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 3050 for a target of 2500 with a stop at 3100 and trade long above 3050 for a target of 3150 with a stop at 3000.



Short term Technical View of Nifty


Below 2950, Nifty is likely to decline towards 2750 and below 2750, it could test 2500.


The recent rally from the low of 2250 seems to be corrective and it seems it has peaked out at 3250.

The present rally from 2500 seems to be a counter trend rally and it is likely to peak out below the previous top of 3250.





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 1400 is crucial for short term. If it sustains above 1400, then it is likely to rally towards 1490.

Instead, if it fails to sustain above 1400 in coming trading sessions, then it is likely to turn weak and it could decline towards 1150 initially.

Trading Strategy for Reliance

For intraday, the crucial level is 1360. Trade long above these levels and trade short below these levels.

Positional traders can initiate longs if it moves above 1400 for a target of 1490. Initiate shorts if it fails to sustain above 1400 for a target of 1150 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 1220. 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 1120 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 1120, 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 1165. Trade long above this level and be short below this level.

Positional traders can initiate shorts if it fails to sustain above 1120 for a target of 1000. Initiate longs if it sustains above 1120 for a target of 1200.





ONGC (spot)

The level 740 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 780.

Instead, if it fails to sustain above 740, the short term trend would turn bearish and in the downside it is likely to decline towards 600 initially.



Trading Strategy for ONGC

For intraday, the crucial level is 729. Trade long above this level and be short below this level.

Positional traders can initiate shorts if the scrip fails to sustain above 740 for a target of 600. Initiate longs if it sustains above 740 for a target of 780.




TCS (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 350 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 550.


Trading Strategy for TCS

For intraday, the crucial level is 487. 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 550. Short if it fails to sustain above 520 for a target of 350.


Visit us at:
www.sathiamoorthy.com

Contact:
9381203517
sathiamoorthyd@gmail.com
Yahoo Messenger Id - sathiamoorthyd@yahoo.com
Chennai