TECHNICAL OUTLOOK, 12 MAY

Nifty (spot) 3554.60



Nifty Intraday trading levels and range

Today, if Nifty trades above 3515, then it could test 3620.

Instead, if it sustains below 3515, then it could test 3440 and below this level, it could test 3400.



Nifty intraday Trading Strategy

For intraday, the crucial level is 3515. 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 3700 with a stop at 3600.



Short term Technical View of Nifty


The rally from the low of 2545 seems to corrective and it is likely to top out around 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 1820 is crucial for short term. If it sustains above 1820, then it is likely to rally towards 2000.

Instead, if it fails to sustain above 1820 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 1885. Trade long above these levels and trade short below these levels.

Positional traders can initiate longs if it sustains above 1820 for a target of 2000. Initiate shorts if it fails to sustain above 1820 for a target of 1700.



SBI (spot)

The crucial level for the short term for this scrip is 1230. If it fails to sustain above 1230, then it is likely to turn bearish and in the down side it could test 1150 in coming trading sessions.

Instead, if it sustains above 1230, then the short term trend would turn bullish and in the upper side it is likely to move towards 1350.


Trading Strategy for SBI

For Intraday, the crucial level is 1230. Trade long above this level and trade short below this level.

Positional traders can initiate shorts if it fails to sustain above 1230 for a target of 1150. And initiate longs if it sustains above 1230 for a target of 1350.



Ongc (spot)

The level 880 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 880, 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 880 for a target of 750. Initiate longs if it sustains above 880 for a target of 930.





Icici Bank (spot)

The level 515 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 515, the short term trend would turn bearish and in the downside it is likely to decline towards 450 initially.



Trading Strategy for Icici Bank

For intraday, the crucial level is 515. Trade long above this level and be short below this level.

Positional traders can initiate shorts if the scrip fails to sustain above 515 for a target of 450. Initiate longs if it sustains above 515 for a target of 550.




Infosys (spot)

The crucial level for the scrip in the short term is 1500. The trend would remain bearish for this scrip if it sustains below 1500 and in the down side, it could test 1400 initially.

If the scrip sustains above 1500, then the scrip is likely to turn bullish in the short term and in the upper side it could rally towards 1600.


Trading Strategy for Infosys

For intraday, the crucial level is 1500. Trade long above this level and be short below this level.

Positional traders can initiate longs if the scrip sustains above 1500 in the upside for a target of 1600. Short if it fails to sustain above 1500 for a target of 1400.


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