TECHNICAL OUTLOOK, 4 JUNE

Nifty (spot) 4530.70



Nifty Intraday trading levels and range

Today, if Nifty trades above 4540, then it could test 4600.

Instead, if it sustains below 4540, then it could test 4440 and below this level, it could test 4400.


Nifty intraday Trading Strategy

For intraday, the crucial level is 4540. 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 2300 is crucial for short term. If it sustains above 2300, then it is likely to rally towards 2350.

Instead, if it fails to sustain above 2300 in coming trading sessions, then it is likely to turn weak and it could decline towards 2150 initially.

Trading Strategy for Reliance

For intraday, the crucial level is 2300. Trade long above these levels and trade short below these levels.

Positional traders can initiate longs if it sustains above 2300 for a target of 2350. Initiate shorts if it fails to sustain above 2300 for a target of 2150.



SBI (spot)

The crucial level for the short term for this scrip is 1950. If it fails to sustain above 1950, 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 1950, then the short term trend would turn bullish and in the upper side it is likely to move towards 2000.


Trading Strategy for SBI

For Intraday, the crucial level is 1950. Trade long above this level and trade short below this level.

Positional traders can initiate shorts if it fails to sustain above 1950 for a target of 1750. And initiate longs if it sustains above 1950 for a target of 2000.



Rcom (spot)

The level 335 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 355.

If it fails to sustain above 335, then the trend would turn bearish and in the downside it is likely to decline towards 290 initially.


Trading Strategy for Rcom


For intraday, the crucial level is 335. Trade long above this level and be short below this level.

Positional traders can initiate shorts if it fails to sustain above 335 for a target of 280. Initiate longs if it sustains above 335 for a target of 355.





Icici Bank (spot)

The level 710 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 750.

Instead, if it fails to sustain above 710, the short term trend would turn bearish and in the downside it is likely to decline towards 650 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 710 for a target of 650. Initiate longs if it sustains above 710 for a target of 750.




DLF (spot)

The crucial level for the scrip in the short term is 440. The trend would remain bearish for this scrip if it sustains below 440 and in the down side, it could test 350 initially.

If the scrip sustains above 440, then the scrip is likely to turn bullish in the short term and in the upper side it could rally towards 460.


Trading Strategy for DLF

For intraday, the crucial level is 415. Trade long above this level and be short below this level.

Positional traders can initiate longs if the scrip sustains above 440 in the upside for a target of 460. Short if it fails to sustain above 440 for a target of 350.


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