TECHNICAL OUTLOOK, 06 MAY

D Sathia Moorthy


Nifty (spot) 3661.90



Nifty Intraday trading levels and range

Today, if Nifty trades below 3640, then it could test 3600 and below this level it could test 3525.

Instead, if it sustains above 3640, then it could test 3750.



Nifty intraday Trading Strategy

For intraday, the crucial level is 3640. 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 3600 for a target of 3300 with a stop at 3600 and trade long above 3600 for a target of 3750 with a stop at 3600.



Short term Technical View of Nifty


The short term trend is likely to weak and it could test 3300 initially. The level 3600 is crucial for short term. Once it starts trading below 3600, the present rally is likely to be terminated.

Above 3600, it could test 3750.




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 1900 is crucial for short term. If it sustains above 1900, then it is likely to rally towards 1960.

Instead, if it fails to sustain above 1900 in coming trading sessions, then it is likely to turn weak and it could decline towards 1700 initially.

Trading Strategy for Reliance

For intraday, the crucial level is 1890. Trade long above these levels and trade short below these levels.

Positional traders can initiate longs if it moves above 1900 for a target of 1960. Initiate shorts if it fails to sustain above 1900 for a target of 1700.



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 1400.


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 1400.



Ongc (spot)

The level 930 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 960.

If it fails to sustain above 930, then the trend would turn bearish and in the downside it is likely to decline towards 750 initially.


Trading Strategy for Ongc


For intraday, the crucial level is 880. Trade long above this level and be short below this level.

Positional traders can initiate shorts if it fails to sustain above 930 for a target of 750. Initiate longs if it sustains above 930 for a target of 960.





Icici Bank (spot)

The level 550 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 600.

Instead, if it fails to sustain above 550, the short term trend would turn bearish and in the downside it is likely to decline towards 470 initially.



Trading Strategy for Icici Bank

For intraday, the crucial level is 550. Trade long above this level and be short below this level.

Positional traders can initiate shorts if the scrip fails to sustain above 560 for a target of 470. Initiate longs if it sustains above 550 for a target of 600.




Infosys (spot)

The crucial level for the scrip in the short term is 1550. The trend would remain bearish for this scrip if it sustains below 1550 and in the down side, it could test 1400 initially.

If the scrip sustains above 1550, then the scrip is likely to turn bullish in the short term and in the upper side it could rally towards 1650.


Trading Strategy for Infosys

For intraday, the crucial level is 1550. Trade long above this level and be short below this level.

Positional traders can initiate longs if the scrip sustains above 1550 in the upside for a target of 1650. Short if it fails to sustain above 1550 for a target of 1400.


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