TECHNICAL OUTLOOK, 17 SEPTEMBER

Nifty (spot) 4821.02



Nifty Intraday trading levels and range


Today, if Nifty sustains below 4940, then it could test 4850.

Instead, if Nifty trades above 4940, then it could test 5010.



A leg has terminated on 14th september. The next leg has opened upside from the low of 4790 levels and if it sustains above that level and moves up steeply, then we are likely to see further upside. Instead, if it just sustains above this level, without moving up rapidly, then a steep fell is likely. The level 4790 is crucial for short term.




Nifty intraday Trading Strategy

For intraday, the crucial level is 4940. 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 4720 for a target of 3900 with a stop at 4720 and trade long above 4720 for a target of 5000 with a stop at 4720.



Short term Technical View of Nifty


Nifty is likely to test 3900 initially in the downside, if it fails to move above 4720 in coming trading sessions. And if it trades above 4720, then it could test 5000 levels.




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 4900. 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, if the bottom forms around 2000. If the level 2000 is not held, then Nifty is likely to take more than 2 years to bottom out.





Short term trading calls of Stocks for spot market



Reliance (spot)

The level 2190 is crucial for short term. If it sustains above 2190, then it is likely to rally towards 2250.

Instead, if it fails to sustain above 2190 in coming trading sessions, then it is likely to turn weak and it could decline towards 1950 initially.

Trading Strategy for Reliance

For intraday, the crucial level is 2190. Trade long above these levels and trade short below these levels.

Positional traders can initiate longs if it sustains above 2190 for a target of 2250. Initiate shorts if it fails to sustain above 2190 for a target of 1950.



SBI (spot)

The crucial level for the short term for this scrip is 2120. If it fails to sustain above 2120, then it is likely to turn bearish and in the down side it could test 1950 in coming trading sessions.

Instead, if it sustains above 2120, then the short term trend would turn bullish and in the upper side it is likely to move towards 2200.


Trading Strategy for SBI

For Intraday, the crucial level is 2120. Trade long above this level and trade short below this level.

Positional traders can initiate shorts if it fails to sustain above 1920 for a target of 1820. And initiate longs if it sustains above 1920 for a target of 1970.



Rcom (spot)

The level 320 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 320, 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 320 for a target of 250. Initiate longs if it sustains above 320 for a target of 340.





Icici Bank (spot)

The level 885 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 925.

Instead, if it fails to sustain above 885, the short term trend would turn bearish and in the downside it is likely to decline towards 820 initially.



Trading Strategy for Icici Bank

For intraday, the crucial level is 885 . Trade long above this level and be short below this level.

Positional traders can initiate shorts if the scrip fails to sustain above 885 for a target of 820. Initiate longs if it sustains above 885 for a target of 925.




Tata Steel (spot)

The crucial level for the scrip in the short term is 525. The trend would remain bearish for this scrip if it sustains below 525 and in the down side, it could test 490 initially.

If the scrip sustains above 525, then the scrip is likely to turn bullish in the short term and in the upper side it could rally towards 560.


Trading Strategy for Tata Steel

For intraday, the crucial level is 525. Trade long above this level and be short below this level.

Positional traders can initiate longs if the scrip sustains above 525 in the upside for a target of 560. Short if it fails to sustain above 525 for a target of 490.


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