TECHNICAL OUTLOOK, 30 JANUARY

D Sathia Moorthy

Nifty (spot) 2823.55


Nifty Intraday trading levels

Today, if Nifty trades below 2840 then it could test 2760 and below this level it could test 2700.

Instead, if it moves above 2840, then it could test 2900.


Nifty Trading Strategy for intraday and positional trading

For intraday, the crucial level is 2800. 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 1250. 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 1115. 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 1290. 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.





Gail (spot)

The level 215 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 235.

Instead, if it fails to sustain above 215, the short term trend would turn bearish and in the downside it is likely to decline towards 155 initially.



Trading Strategy for Gail

For intraday, the crucial level is 192. Trade long above this level and be short below this level.

Positional traders can initiate shorts if the scrip fails to sustain above 215 for a target of 155. Initiate longs if it sustains above 215 for a target of 235.




Rpower (spot)

The crucial level for the scrip in the short term is 110. The trend would remain bearish for this scrip if it sustains below 110 and in the down side, it could test 70 initially.

If the scrip sustains above 110, then the scrip is likely to turn bullish in the short term and in the upper side it could rally towards 125.


Trading Strategy for Rpower

For intraday, the crucial level is 103. Trade long above this level and be short below this level.

Positional traders can initiate longs if the level 110 is broken in the upside for a target of 125. Short if it fails to sustain above 110 for a target of 70.


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