Technical view by Nooresh

Discipline and Stoplosses !! .. Uncertainty is never liked in markets !

Sensex continues to show wild moves all over the place as the uncertainty with p-notes, rumours etc continue to show the pressure ... So what can be done in this case is just follow good discipline like dont stay leveraged or on margin as stated so many times .... I always said this and if u have followed good discipline todays declines would have not eaten into ur profits...

Technical View :

Sensex as i said n number of times the minimum projection is at 19200 -19300 levels and is to be seen ... Markets made a top around those levels and not clearing that was an indication of caution but such a reaction is not expected technically ... The current closing suggest following strategy :

When in doubt get out !!

The strategy is to exit and reduce any short term positions on rise to 18500 -18800 levels and sit back and wait and watch ... And mind u dont stay leveraged and on margin so that u dont eat into the profits gained in the rally ....
Wait for 17200 to initiate buying for medium term and worst case could be 16500 which would be really good ... The other way is to stay invested in long term and watchout for uncertainty to clear and we settle around ne of the above to levels...
Will post the chart tomorrow or later in the day !!

Lot of our calls in the day moved up like MTNL frm 176 to 186 , NIIT TECH frm 385 to 410 , HCC did 200 .. GIPCL did 124 , NEyvyeli Lignite did 136 ... But all closed down due to the selling and partial profits were booked at higher target levels and then hit stoplosses but still due to partial booking are hold for medium term investments but in small exposure

Some messages of the day

18-Oct-2007 11:37:27 ( when markets were at 19000-19150 )
Highly leverage traders this is the best time to reduce leverage as part of good discipline ...

18-Oct-2007 11:38:08 ( once again to alert )
Keep trailing stops and be cautious at 19200 levels and watch for a closing above that to clear pullback possibility

18-Oct-2007 14:29:44

Dont stay leveraged and overbought look for investments and stay hedged at least .Volatility will continue .Niit tech who booked at 410 try to enter 385-395

18-Oct-2007 14:50:20( when markets were down 150-200 points )

Traders reduce and exit positions on the long side in short term and Look only towards buying only with a m2-3 mths view and dont stay leveraged or on margin

All the above messages were to alert clients to be careful and there is nothing wrong heavily with the markets and for investors there is nothing to worry but short term traders were warned as such moves can take a killing to ur profits ....

One Line which i like about trading :

I love to pay for my mistakes and sometime heavily for it so next time i would never make the same one and also make much much more coz of that and forget the saving of losses again n again forever !!!

Stocks and levels to watch

ACC ....supports at 1000 and 930

IDBI ......121 and major support at 110

TAta Power at 950

Stocks to watchout for in pullback


Investment stocks in Buy n FORGET Category Long term :

NESCO and Gulf Oil ...more of analysis and logic will be covered in further posts

All the above stocks gave good moves in the day and gave a good breakout and move to but ended up losing all the gains but can fire in consolidating and settled markets ...

IT Stocks are seeing contrarian buyiing for short term and can see 3-7 % move in the biggies in next 1 week ...

Best Regards ,



Article by Nooresh Merani

Nooresh has written 2532 articles.

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