TECHNICAL OUTLOOK, 29 JANUARY

D Sathia Moorthy


Nifty (spot) 2849.50


Nifty is likely to top out around 2900 Levels



Nifty Intraday trading levels

Today, if Nifty trades above 2850 then it could test 2910.

Instead, if it fails to move above 2910, then it could test 2800 and below this level it could test 2750.


Nifty Trading Strategy for intraday and positional trading

For intraday, the crucial level is 2910. Trade short below this level and trade long above this level.

Positional traders can initiate shorts if it fails to sustain above 2910 for a target of 2500 with a stop at 2950 and trade long above 2950 for a target of 3050 with a stop at 2910.



Short term Technical View of Nifty


The short term trend is looking weak and it is likely to test 2500 initially and then it could decline towards 2000 and this view holds good as long as Nifty stays below 2950.






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 short term. If it sustains above 1310, then it is likely to rally towards 1360.

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 1360. 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 1140. If it fails to sustain above 1140, then it is likely to turn bearish and in the down side it could test 900 in coming trading sessions.

Instead, if it sustains above 1140, then the short term trend would turn bullish and in the upper side it is likely to move towards 1190.


Trading Strategy for SBI

For Intraday, the crucial level is 1140. Trade long above this level and trade short below this level.

Positional traders can initiate shorts if it fails to sustain above 1140 for a target of 900. And initiate longs if it sustains above 1140 for a target of 1190.



Infosys (spot)

The level 1320 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 1320, 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 1320. Trade long above this level and be short below this level.

Positional traders can initiate shorts if it fails to sustain above 1320 for a target of 1000. Initiate longs if it sustains above 1320 for a target of 1350.





Rcom (spot)

The level 185 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 210.

Instead, if it fails to sustain above 185, the short term trend would turn bearish and in the downside it is likely to decline towards 130 initially.



Trading Strategy for Rcom

For intraday, the crucial level is 177. Trade long above this level and be short below this level.

Positional traders can initiate shorts if the scrip fails to sustain above 185 for a target of 130. Initiate longs if it sustains above 185 for a target of 210.




Ranbaxy (spot)

The crucial level for the scrip in the short term is 225. The trend would remain bearish for this scrip if it sustains below 225 and in the down side, it could test 150 initially.

If the scrip sustains above 225, then the scrip is likely to turn bullish in the short term and in the upper side it could rally towards 250.


Trading Strategy for Ranbaxy

For intraday, the crucial level is 225. Trade long above this level and be short below this level.

Positional traders can initiate longs if the level 225 is broken in the upside for a target of 250. Short if it fails to sustain above 225 for a target of 150.


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