TECHNICAL OUTLOOK, 27 APRIL

D Sathia Moorthy


Nifty (spot) 3480.75



Nifty Intraday trading levels and range

Today, if Nifty trades below 3440 then it could test 3380.

Instead, if it sustains above 3440, then it could test 3500.



Nifty intraday Trading Strategy

For intraday, the crucial level is 3440. 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 3450 for a target of 2900 with a stop at 3450 and trade long above 3450 for a target of 3550 with a stop at 3450.



Short term Technical View of Nifty


The rally from the low of 2545 seems to corrective and it is likely to top out below 3600 and in the downside it is likely to test 2900 initially in coming trading sessions.


The maximum Nifty could go in the upside for the short term is 3600.




Medium term outlook of Nifty dated on 17 April 2009

The medium term outlook of Nifty would remain bearish if it fails to sustain above 3600. 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 1760 is crucial for short term. If it sustains above 1760, then it is likely to rally towards 1850.

Instead, if it fails to sustain above 1760 in coming trading sessions, then it is likely to turn weak and it could decline towards 1500 initially.

Trading Strategy for Reliance

For intraday, the crucial level is 1760. Trade long above these levels and trade short below these levels.

Positional traders can initiate longs if it moves above 1760 for a target of 1850. Initiate shorts if it fails to sustain above 1760 for a target of 1500.



SBI (spot)

The crucial level for the short term for this scrip is 1320. If it fails to sustain above 1320, then it is likely to turn bearish and in the down side it could test 1100 in coming trading sessions.

Instead, if it sustains above 1320, then the short term trend would turn bullish and in the upper side it is likely to move towards 1360.


Trading Strategy for SBI

For Intraday, the crucial level is 1320. Trade long above this level and trade short below this level.

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



Ongc (spot)

The level 890 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 930.

If it fails to sustain above 890, then the trend would turn bearish and in the downside it is likely to decline towards 800 initially.


Trading Strategy for Ongc


For intraday, the crucial level is 840. Trade long above this level and be short below this level.

Positional traders can initiate shorts if it fails to sustain above 890 for a target of 800. Initiate longs if it sustains above 890 for a target of 930.





Icici Bank (spot)

The level 410 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 440.

Instead, if it fails to sustain above 410, the short term trend would turn bearish and in the downside it is likely to decline towards 320 initially.



Trading Strategy for Icici Bank

For intraday, the crucial level is 410. Trade long above this level and be short below this level.

Positional traders can initiate shorts if the scrip fails to sustain above 410 for a target of 320. Initiate longs if it sustains above 410 for a target of 440.




Rcom (spot)

The crucial level for the scrip in the short term is 225. The trend would remain bearish for this scrip if it sustains below 225 and in the down side, it could test 170 initially.

If the scrip sustains above 225, then the scrip is likely to turn bullish in the short term and in the upper side it could rally towards 250.


Trading Strategy for Rcom

For intraday, the crucial level is 225. Trade long above this level and be short below this level.

Positional traders can initiate longs if the scrip sustains above 225 in the upside for a target of 250. Short if it fails to sustain above 225 for a target of 170.


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