TECHNICAL OUTLOOK, 3 DECEMBER

D Sathia Moorthy


Nifty (spot) 2657.80



Nifty Intraday trading levels

Today, if Nifty trades above 2620, then it could test 2720. Instead, if it trades below 2620, then it could test 2500.


Nifty Trading Strategy for intraday and positional trading

For intraday, the crucial level is 2720. Trade short below this level and trade long above this level.

Positional traders can initiate shorts if it fails to sustain above 2720 for a target of 2200 with a stop at 2925 and trade long above 2850 for a target of 3050 with a stop at 2780.



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 1115 is crucial for this scrip for the short term. If it sustains above 1115, then it is likely to rally towards 1180.

Instead, if it fails to sustain above 1115 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 1060. Trade long above these levels and trade short below these levels.

Positional traders can initiate longs if it moves above 1115 for a target of 1180. Initiate shorts if it fails to sustain above 1115 for a target of 900 initially.



SBI (spot)

The crucial level for the short term for this scrip is 1065. If it fails to sustain above 1065, 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 1065, then the short term trend would turn bullish and in the upper side it is likely to move towards 1130.


Trading Strategy for SBI

For Intraday, the crucial level is 1045. Trade long above this level and trade short below this level.

Positional traders can initiate shorts if it fails to sustain above 1065 for a target of 900. And initiate longs if it sustains above 1065 for a target of 1165.



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 1350.

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 1195. 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 1350.





Icici Bank (spot)

The level 340 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 390.

Instead, if it fails to sustain above 340, the short term trend would turn bearish and in the downside it is likely to decline towards 250 initially.



Trading Strategy for Icici Bank

For intraday, the crucial level is 320. Trade long above this level and be short below this level.

Positional traders can initiate shorts if the scrip fails to sustain above 340 for a target of 250. Initiate longs if it sustains above 340 for a target of 390.




Maruti (spot)

The crucial level for the scrip in the short term is 485. The trend would remain bearish for this scrip if it sustains below 485 and in the down side, it could test 400 initially.

If the scrip sustains above 485, then the scrip is likely to turn bullish in the short term and in the upper side it could rally towards 525.


Trading Strategy for Maruti

For intraday, the crucial level is 455. Trade long above this level and be short below this level.

Positional traders can initiate longs if the level 485 is broken in the upside for a target of 525. Short if it fails to sustain above 485 for a target of 400.


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