TECHNICAL OUTLOOK, 12 MARCH

D Sathia Moorthy


Nifty (spot) 2573.15



Nifty Intraday trading levels and range

Today, if Nifty trades below 2600 then it could test 2550 and below this level it could test 2500.

Instead, if it sustains above 2600, then it could test 2650.


Nifty intraday Trading Strategy

For intraday, the crucial level is 2600. 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 2650 for a target of 2400 with a stop at 2650 and trade long above 2650 for a target of 2720 with a stop at 2650.



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 1190 is crucial for short term. If it sustains above 1190, then it is likely to rally towards 1240.

Instead, if it fails to sustain above 1190 in coming trading sessions, then it is likely to turn weak and it could decline towards 1000 initially.

Trading Strategy for Reliance

For intraday, the crucial level is 1170. Trade long above these levels and trade short below these levels.

Positional traders can initiate longs if it moves above 1190 for a target of 1240. Initiate shorts if it fails to sustain above 1190 for a target of 1000 initially.



SBI (spot)

The crucial level for the short term for this scrip is 950. If it fails to sustain above 970, then it is likely to turn bearish and in the down side it could test 750 in coming trading sessions.

Instead, if it sustains above 950, then the short term trend would turn bullish and in the upper side it is likely to move towards 1020.


Trading Strategy for SBI

For Intraday, the crucial level is 910. Trade long above this level and trade short below this level.

Positional traders can initiate shorts if it fails to sustain above 970 for a target of 750. And initiate longs if it sustains above 970 for a target of 1020.



Infosys (spot)

The level 1240 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 1280.

If it fails to sustain above 1240, 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 1240. Trade long above this level and be short below this level.

Positional traders can initiate shorts if it fails to sustain above 1240 for a target of 1000. Initiate longs if it sustains above 1240 for a target of 1260.





Ongc (spot)

The level 680 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 730.

Instead, if it fails to sustain above 680, the short term trend would turn bearish and in the downside it is likely to decline towards 600 initially.



Trading Strategy for Ongc

For intraday, the crucial level is 680. Trade long above this level and be short below this level.

Positional traders can initiate shorts if the scrip fails to sustain above 670 for a target of 500. Initiate longs if it sustains above 670 for a target of 730.




Icici Bank (spot)

The crucial level for the scrip in the short term is 290. The trend would remain bearish for this scrip if it sustains below 290 and in the down side, it could test 200 initially.

If the scrip sustains above 290, then the scrip is likely to turn bullish in the short term and in the upper side it could rally towards 320.


Trading Strategy for Icici Bank

For intraday, the crucial level is 275. Trade long above this level and be short below this level.

Positional traders can initiate longs if the level 290 is broken in the upside for a target of 320. Short if it fails to sustain above 290 for a target of 200.


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