TECHNICAL OUTLOOK, 1 JUNE

Nifty (spot) 4448.95



Nifty Intraday trading levels and range

Today, if Nifty trades above 4420, then it could test 4500.

Instead, if it sustains below 4420, then it could test 4380 and below that level, it could test 4200.


Nifty intraday Trading Strategy

For intraday, the crucial level is 4420. 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 4650 for a target of 3600 with a stop at 4650 and trade long above 4650 for a target of 5000 with a stop at 4650.



Short term Technical View of Nifty


The rally from the low of 2545 seems to corrective and it is likely to top out around 4650. Initially it is likely to test 3600 in the downside.






Medium term outlook of Nifty dated on 20 May 2009

The medium term outlook of Nifty would remain bearish if it fails to sustain above 4650. 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 2250 is crucial for short term. If it sustains above 2250, then it is likely to rally towards 2300.

Instead, if it fails to sustain above 2250 in coming trading sessions, then it is likely to turn weak and it could decline towards 2100 initially.

Trading Strategy for Reliance

For intraday, the crucial level is 2200. Trade long above these levels and trade short below these levels.

Positional traders can initiate longs if it sustains above 2200 for a target of 2250. Initiate shorts if it fails to sustain above 2200 for a target of 2100.



SBI (spot)

The crucial level for the short term for this scrip is 1850. If it fails to sustain above 1850, then it is likely to turn bearish and in the down side it could test 1750 in coming trading sessions.

Instead, if it sustains above 1850, then the short term trend would turn bullish and in the upper side it is likely to move towards 1950.


Trading Strategy for SBI

For Intraday, the crucial level is 1850. Trade long above this level and trade short below this level.

Positional traders can initiate shorts if it fails to sustain above 1800 for a target of 1750. And initiate longs if it sustains above 1850 for a target of 1950.



Rcom (spot)

The level 310 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 340.

If it fails to sustain above 310, then the trend would turn bearish and in the downside it is likely to decline towards 250 initially.


Trading Strategy for Rcom


For intraday, the crucial level is 310. Trade long above this level and be short below this level.

Positional traders can initiate shorts if it fails to sustain above 310 for a target of 250. Initiate longs if it sustains above 310 for a target of 340.





Icici Bank (spot)

The level 750 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 780.

Instead, if it fails to sustain above 750, the short term trend would turn bearish and in the downside it is likely to decline towards 600 initially.



Trading Strategy for Icici Bank

For intraday, the crucial level is 710 . Trade long above this level and be short below this level.

Positional traders can initiate shorts if the scrip fails to sustain above 750 for a target of 600. Initiate longs if it sustains above 750 for a target of 780.




DLF (spot)

The crucial level for the scrip in the short term is 380. The trend would remain bearish for this scrip if it sustains below 380 and in the down side, it could test 300 initially.

If the scrip sustains above 380, then the scrip is likely to turn bullish in the short term and in the upper side it could rally towards 430.


Trading Strategy for DLF

For intraday, the crucial level is 380. Trade long above this level and be short below this level.

Positional traders can initiate longs if the scrip sustains above 380 in the upside for a target of 430. Short if it fails to sustain above 380 for a target of 300.


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