TECHNICAL OUTLOOK, 11 FEBRUARY

D Sathia Moorthy


Nifty (spot) 2934.50



Nifty Intraday trading levels and range


Today, if it sustains below 2900, then it could test 2850 and below this level it could test 2750.

Instead, if it sustains above 2900, then it could test 2940.


Nifty intraday Trading Strategy

For intraday, the crucial level is 2900. Trade short below this level and trade long above this level.


Nifty Positional Trading Strategy


Positional traders can initiate shorts if it fails to sustain above 2950 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 1400 is crucial for short term. If it sustains above 1400, then it is likely to rally towards 1450.

Instead, if it fails to sustain above 1400 in coming trading sessions, then it is likely to turn weak and it could decline towards 1180 initially.

Trading Strategy for Reliance

For intraday, the crucial level is 1390. 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 1450. Initiate shorts if it fails to sustain above 1400 for a target of 1180 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 1020 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 1180.


Trading Strategy for SBI

For Intraday, the crucial level is 1155. 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 1020. And initiate longs if it sustains above 1140 for a target of 1180.



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 1200 initially.


Trading Strategy for Infosys


For intraday, the crucial level is 1300. 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.





ICICI Bank (spot)

The level 440 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 480.

Instead, if it fails to sustain above 440, the short term trend would turn bearish and in the downside it is likely to decline towards 350 initially.



Trading Strategy for Icici Bank

For intraday, the crucial level is 420. Trade long above this level and be short below this level.

Positional traders can initiate shorts if the scrip fails to sustain above 440 for a target of 350. Initiate longs if it sustains above 440 for a target of 480.




DLF (spot)

The crucial level for the scrip in the short term is 160. The trend would remain bearish for this scrip if it sustains below 160 and in the down side, it could test 100 initially.

If the scrip sustains above 160, then the scrip is likely to turn bullish in the short term and in the upper side it could rally towards 180.


Trading Strategy for DLF

For intraday, the crucial level is 145. Trade long above this level and be short below this level.

Positional traders can initiate longs if the level 160 is broken in the upside for a target of 180. Short if it fails to sustain above 160 for a target of 100.


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