TECHNICAL OUTLOOK, 8 APRIL

D Sathia Moorthy


Nifty (spot) 3256.60



Nifty Intraday trading levels and range

Today, if Nifty trades below 3270 then it could test 3200 and below this level, it could test 3150.

Instead, if it sustains below 3270, then it could test 3325.



Nifty intraday Trading Strategy

For intraday, the crucial level is 3200. 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 3150 for a target of 2500 with a stop at 3150 and trade long above 3150 for a target of 3250 with a stop at 3150.



Short term Technical View of Nifty


The short term trend is looking weak and it is likely to test 2900 initially and then it could decline towards 2500 and this view holds good as long as Nifty stays below 3250.

Since the present rally seems to be corrective, it is likely to top out around 3250 and it is likely to break 2500 in the downside in coming weeks






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 1640 is crucial for short term. If it sustains above 1640, then it is likely to rally towards 1750.

Instead, if it fails to sustain above 1640 in coming trading sessions, then it is likely to turn weak and it could decline towards 1300 initially.

Trading Strategy for Reliance

For intraday, the crucial level is 1640. Trade long above these levels and trade short below these levels.

Positional traders can initiate longs if it moves above 1640 for a target of 1750. Initiate shorts if it fails to sustain above 1640 for a target of 1300.



SBI (spot)

The crucial level for the short term for this scrip is 1150. If it fails to sustain above 1150, then it is likely to turn bearish and in the down side it could test 1000 in coming trading sessions.

Instead, if it sustains above 1150, then the short term trend would turn bullish and in the upper side it is likely to move towards 1200.


Trading Strategy for SBI

For Intraday, the crucial level is 1150. Trade long above this level and trade short below this level.

Positional traders can initiate shorts if it fails to sustain above 1150 for a target of 1000. And initiate longs if it sustains above 1150 for a target of 1200.



TCS (spot)

The level 600 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 630.

If it fails to sustain above 600, then the trend would turn bearish and in the downside it is likely to decline towards 500 initially.


Trading Strategy for TCS


For intraday, the crucial level is 585. Trade long above this level and be short below this level.

Positional traders can initiate shorts if it fails to sustain above 600 for a target of 500. Initiate longs if it sustains above 600 for a target of 630.





Icici Bank (spot)

The level 380 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 410.

Instead, if it fails to sustain above 380, the short term trend would turn bearish and in the downside it is likely to decline towards 300 initially.



Trading Strategy for Icici Bank

For intraday, the crucial level is 362. Trade long above this level and be short below this level.

Positional traders can initiate shorts if the scrip fails to sustain above 380 for a target of 300. Initiate longs if it sustains above 380 for a target of 410.




Maruti (spot)

The crucial level for the scrip in the short term is 815. The trend would remain bearish for this scrip if it sustains below 815 and in the down side, it could test 700 initially.

If the scrip sustains above 815, then the scrip is likely to turn bullish in the short term and in the upper side it could rally towards 850.


Trading Strategy for Maruti

For intraday, the crucial level is 855. Trade long above this level and be short below this level.

Positional traders can initiate longs if the scrip sustains 815 in the upside for a target of 850. Short if it fails to sustain above 815 for a target of 700.


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