Technical view by Nooresh


In the last few days we have been continously mentioning our discomfort arnd 20000-20400 levels and the best way would be highly stock specific with strict stoplosses and disciplined investments without leverage.

Also an alert to remind about stoplosses was sent via sms and yahoo messenger .

17-Dec-2007 10:51:46

EXIT stocks which have hit stoplosses.Investment stocks need not worry. Sun Pharma Adv has given 100\% returns exit 60-75\% of holding and forget rest for 3 mth

Newsletters of last two days have been posted on the link below .

Also those who would like to see the very old newsletters sent at 8800 , 12300 , 14700 and various other important peaks and bottoms can check

Sensex technical view :

Markets have not been able to cross the crucial zone of 20000-20400 which has been mentioned in the blog even during the previous top as a large resistance zone. Supports for the current correction are placed in the zone of 18900-19100 ( fibo + trendline + mas) . Closing below those levels could create problems in the short term.

Strategy should be to be extremely stock specific as markets have not done much but particular investment picks like SUN Pharma advanced, GTL infra , Core Projects, Thriumalai chemicals , Rain Calcining , Andhra Petro , Pennar Inds, Ispat , Sun flag , KCP, Hind Oil exploration etc etc etc have given a returns of 30-300% in no time.

Though certain stocks were unable to perform well and hit the stoplosses. For this very reason to maintain stoplosses and trailing stoplosses to the winning trades.

Let your profits run and cut short losses.

Some Thoughts :

Portfolio Reviews and Optimizations : ( Remove the weeds !!! )

The most normal thing an investor tends to see in the portfolio tracker is the maximum loser and the maximum gainer. One should be looking at the portofolio from the gardeners point of view.

A gardener is very quick to remove the weeds , plucking some flowers regularly and adding fertilizers when needed. Also he keeps a good fence around the garden from being tresspassed. Trimming plants and using a healthy combination of flowers according the seasons so the garden is visibly appealing throughout the year!!

The same analogy implied to markets :

Remove the weeds ------Cut short losses

Plucking flowers ----- booking partial profits and taking them home.

Adding fertilizers -- Buying into winners by averaging at fresh moves. pyramiding technique.

Fencing ----------Hedging and keeping stoplosses and lower or no leverage so nobody can forcefully make u take wrong decisions.

Trimming plants ---Consolidation and proper allocation

Healthy combination of flowers ---- Being flexible and watchfull of the trends.

-----------> ARE YOU A GOOD GARDENER!!!!! ????

FOR ANALYSIS THAT WORKS ---- check for subscription details and TECHNICAL ANALYSIS TRAINING .

Best Regards,



Article by Nooresh Merani

Nooresh has written 2532 articles.

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