Technical view by Nooresh

Testing times….Belief , research and Guts

Sensex is continuing to test the 13700 area.... Only a close below 13700 on a weekly and monthly basis will negate the medium term uptrend ... The fundamental story of indian markets doesnt change in some weeks of panic but if u are a long term investor and have research and belief in your investments now u need one more thing --- Guts to face the extreme volatility and ability to use the same to your advantage .... ...

Indian markets have seen 17th May , 8800 , 12300 and now ??? ..............But after deep blood good times have come back as the long term growth story remains ....Every time the reasons have been different GOVT fall , China and global cues etc etc... on a long term scenario we have always made a new high next 1 yr after the panics ...

Unexpected will always occur but cannot affect the primary trend which is up ... So get your brains working start looking for stocks which are available at good levels or are sustaining well in this market ... Make your shopping list ...yes but for long term ....

On a pessimistic note : Some global concerns and internal concerns like govt etc are triggers in which rationalism doesnt prevail. So panics due to irrationalism can be quick and deep and same way back up to kill on either side ...

And i again mention not a traders market like saying for last 2 -3 weeks ... The markets dont stop functioning and the value of stocks dont become zero and neither does the stock run 10 times ..........Opportunities will always be there so wait for stability and good sentiments to trade dont make it a compulsion ... Like in any business there is an off season and a good season :)

Review :

All the long term stocks mentioned like shiv vani , aptech , Walchandnagar , GEI inds , Elecon engg , Indo tech transformers, Andhra Petro , Whirlpool and others still look good and can be slowly accumulated with a 6 mths + view...

Shah Alloys stoploss hit better book small losses then to hold on ...Andhra Petro buy till 21 slowly , TFCIL till 23

Stocks in A Group which should be accumulated in a SIP way ...i.e by systematically every week or every month and fixed amount so ur average price uses the volatility and the view should be 6 mths to 2 yrs ....

Hindalco , ICICI BAnk , IDBI n IDFC ( i like them for 1 -3 yrs view safe bets ) , Reliance Energy , Tata Power , Reliance Inds , JP Hydro , LnT ( huge value unlocking in next 1-2 yrs )

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Article by Nooresh Merani

Nooresh has written 2532 articles.

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