Technical Analysis of Indian Equities by Nooresh

Fed on a high !!


FED cuts interest rates by .5 bps which is to be taken as a very positiive outcome ...Sensex looks set to cross previous highs... Technically the previous top at 15868 is the next resistance ..On the higher side if it crosses prev highs , the euphoria will be difficult to sustain above 16400 ( + - 100 points ) ..Brief view given in the sensex chart shown ...

The current euphoric rally on back of FED cut is an icing on the cake for us as we have used the declines for investments in good stocks which have overperformed the indices and have given super gains in spite of volatility ... I wont advise fresh commitments on higher levels as the risk to reward is not in a gr8 shape in euphoric moves rather get lighter to re enter at lower levels .. Trading can be kept to extreme short term ..

Well yes people will jump on the wagon now to buy ...Every thing changes very quickly in the markets ... All the whistlers will start shouting now ... The same guys were talking of 12k-13k some days back and we would be seeing new lows etc ....

Just see the analysis given from 18 -22 august when markets were trading close to their lows and world was talking of 12k and wat not !! read all the posts to understand the view and the reason !!

18
http://nooreshtech.blogspot.com/2007/08/india-growth-story-remains-investor.html
19
http://nooreshtech.blogspot.com/2007/08/bottom-so-close-it-will-form-start.html
20
http://nooreshtech.blogspot.com/2007/08/indices-down-frm-highsbut-our-stocks-no.html
21
http://nooreshtech.blogspot.com/2007/08/testing-timesbelief-research-and-guts.html
Dow jones view :
http://nooreshtech.blogspot.com/2007/08/dow-jones-technical-view.html

All the small cap steels continue to rock ...Sun Flag does 24 + , Ispat Inds 23+ , Adhnik 105+ ,, all have gained 220-30% in a matter of a week ... Still the long term scenario remains excellent ..traders can book profits ..

Stocks to watchout for :

Bombay Dyeing above 655-660 , Peninsula Land , Mahindra Gesco ......Look good for short term spurts of 10% or more... Already recommended to clients yesterday
Torrent Power add more above 95 for tgt 120

Bata India stop 179 tgt 188-194 in the day , Bombay Dyeing stop 645 tgt 666 -675 ,
As there would be lot of gap ups cant update much on stock speccific as we are mainly riding the gains... Not many fresh investments only adding to the stocks we like on the higher side..



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Nooresh

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Article by Nooresh Merani

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