TECHNICAL OUTLOOK, 20 FEBRUARY

D Sathia Moorthy


Nifty (spot) 2789.35



Nifty Intraday trading levels and range

Today, if Nifty trades below 2750 then it could test 2700 and below this level it could test 2650.

Instead, if it sustains above 2810, then it could test 2830.


Nifty intraday Trading Strategy

For intraday, the crucial level is 2750. 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 2850 for a target of 2500 with a stop at 2850 and trade long above 2850 for a target of 2950 with a stop at 2850.



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 2850.






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 1320 is crucial for short term. If it sustains above 1320, then it is likely to rally towards 1360.

Instead, if it fails to sustain above 1320 in coming trading sessions, then it is likely to turn weak and it could decline towards 1100 initially.

Trading Strategy for Reliance

For intraday, the crucial level is 1290. Trade long above these levels and trade short below these levels.

Positional traders can initiate longs if it moves above 1320 for a target of 1360. Initiate shorts if it fails to sustain above 1320 for a target of 1100 initially.



SBI (spot)

The crucial level for the short term for this scrip is 1080. If it fails to sustain above 1080, 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 1080, then the short term trend would turn bullish and in the upper side it is likely to move towards 1120.


Trading Strategy for SBI

For Intraday, the crucial level is 1050. Trade long above this level and trade short below this level.

Positional traders can initiate shorts if it fails to sustain above 1080 for a target of 900. And initiate longs if it sustains above 1080 for a target of 1120.



Infosys (spot)

The level 1220 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 1250.

If it fails to sustain above 1220, 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 1220. Trade long above this level and be short below this level.

Positional traders can initiate shorts if it fails to sustain above 1220 for a target of 1000. Initiate longs if it sustains above 1220 for a target of 1250.





Reliance Infra (spot)

The level 520 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 550.

Instead, if it fails to sustain above 520, the short term trend would turn bearish and in the downside it is likely to decline towards 450 initially.



Trading Strategy for Reliance Infra

For intraday, the crucial level is 505. Trade long above this level and be short below this level.

Positional traders can initiate shorts if the scrip fails to sustain above 520 for a target of 550. Initiate longs if it sustains above 520 for a target of 450.




Educomp (spot)

The crucial level for the scrip in the short term is 2090. The trend would remain bearish for this scrip if it sustains below 2090 and in the down side, it could test 1800 initially.

If the scrip sustains above 2090, then the scrip is likely to turn bullish in the short term and in the upper side it could rally towards 2200.


Trading Strategy for Educomp

For intraday, the crucial level is 2035. Trade long above this level and be short below this level.

Positional traders can initiate longs if the level 2090 is broken in the upside for a target of 2200. Short if it fails to sustain above 2090 for a target of 1800.


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