TECHNICAL OUTLOOK, 16 JULY

Nifty (spot) 4233.50



Nifty Intraday trading levels and range


Today, if Nifty sustains below 4210, then it could test 4050 and below that level it could test 4140.

Instead, if Nifty trades above 4210, then it could test 4320.



Nifty intraday Trading Strategy

For intraday, the crucial level is 4320. 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 4350 for a target of 3600 with a stop at 4350 and trade long above 4350 for a target of 4650 with a stop at 4250.



Short term Technical View of Nifty


Nifty is likely to test 3600 initially in the downside, if it fails to move above 4350 in coming trading sessions.

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 30 June 2009

The long term outlook of Nifty is looking bearish and it seems that Nifty is likely to bottom out in 1 year to 2 years 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 1870 is crucial for short term. If it sustains above 1870, then it is likely to rally towards 1950.

Instead, if it fails to sustain above 1870 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 1870. Trade long above these levels and trade short below these levels.

Positional traders can initiate longs if it sustains above 1870 for a target of 1950. Initiate shorts if it fails to sustain above 1870 for a target of 1700.



SBI (spot)

The crucial level for the short term for this scrip is 1650. If it fails to sustain above 1650, then it is likely to turn bearish and in the down side it could test 1400 in coming trading sessions.

Instead, if it sustains above 1650, then the short term trend would turn bullish and in the upper side it is likely to move towards 1700.


Trading Strategy for SBI

For Intraday, the crucial level is 1650. Trade long above this level and trade short below this level.

Positional traders can initiate shorts if it fails to sustain above 1650 for a target of 1400. And initiate longs if it sustains above 1650 for a target of 1700.



Rcom (spot)

The level 250 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 280.

If it fails to sustain above 250, then the trend would turn bearish and in the downside it is likely to decline towards 200 initially.


Trading Strategy for Rcom


For intraday, the crucial level is 250. Trade long above this level and be short below this level.

Positional traders can initiate shorts if it fails to sustain above 250 for a target of 200. Initiate longs if it sustains above 250 for a target of 280.





Icici Bank (spot)

The level 660 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 720.

Instead, if it fails to sustain above 660, the short term trend would turn bearish and in the downside it is likely to decline towards 550 initially.



Trading Strategy for Icici Bank

For intraday, the crucial level is 660 . Trade long above this level and be short below this level.

Positional traders can initiate shorts if the scrip fails to sustain above 660 for a target of 550. Initiate longs if it sustains above 660 for a target of 720.




Tata Steel (spot)

The crucial level for the scrip in the short term is 390. The trend would remain bearish for this scrip if it sustains below 390 and in the down side, it could test 300 initially.

If the scrip sustains above 390 then the scrip is likely to turn bullish in the short term and in the upper side it could rally towards 410.


Trading Strategy for Tata Steel

For intraday, the crucial level is 390. Trade long above this level and be short below this level.

Positional traders can initiate longs if the scrip sustains above 390 in the upside for a target of 410. Short if it fails to sustain above 390 for a target of 300.


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