TECHNICAL OUTLOOK, 16 FEBRUARY

Nifty (spot) 2948.35



Nifty Intraday trading levels and range


Today, if it sustains below 2950, then it could test 2900 and below this level it could test 2850.

Instead, if it sustains above 2950, then it could test 3000.


Nifty intraday Trading Strategy

For intraday, the crucial level is 2950. 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. Instead, if it trades above 2950, then it could test 3050 before moving towards 2500.






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 1200 initially.

Trading Strategy for Reliance

For intraday, the crucial level is 1400. 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 1200 initially.



SBI (spot)

The crucial level for the short term for this scrip is 1180. If it fails to sustain above 1180, 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 1180, then the short term trend would turn bullish and in the upper side it is likely to move towards 1220.


Trading Strategy for SBI

For Intraday, the crucial level is 1180. Trade long above this level and trade short below this level.

Positional traders can initiate shorts if it fails to sustain above 1180 for a target of 1020. And initiate longs if it sustains above 1180 for a target of 1220.



Icici Bank (spot)

The level 440 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 470.

If it fails to sustain above 440, then the 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 440. Trade long above this level and be short below this level.

Positional traders can initiate shorts if it fails to sustain above 440 for a target of 350. Initiate longs if it sustains above 440 for a target of 470.





RPL (spot)

The level 94 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 105.

Instead, if it fails to sustain above 94, the short term trend would turn bearish and in the downside it is likely to decline towards 70 initially.



Trading Strategy for RPL

For intraday, the crucial level is 95. Trade long above this level and be short below this level.

Positional traders can initiate shorts if the scrip fails to sustain above 94 for a target of 70. Initiate longs if it sustains above 94 for a target of 105.




Infosys (spot)

The crucial level for the scrip in the short term is 1285. The trend would remain bearish for this scrip if it sustains below 1285 and in the down side, it could test 1100 initially.

If the scrip sustains above 1285, then the scrip is likely to turn bullish in the short term and in the upper side it could rally towards 1320.


Trading Strategy for Infosys

For intraday, the crucial level is 1265. Trade long above this level and be short below this level.

Positional traders can initiate longs if the level 1285 is broken in the upside for a target of 1320. Short if it fails to sustain above 1285 for a target of 1100.


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