Sensex Technical View :
As have been maintaining in the last few days dont be in a hurry to buy and wait for stability to come in markets. Its better to buy in comfortable zones when a reversal is confirmed rather then catching a falling knife. Sensex can head towards 15800 -16100 if sustains below the crucial level of 16700. All the short term supports have not provided any pullback so its better to wait and watch . Would rather buy at a price higher from today but with comfort .
Sensex has seen a heavy price wise correction and has still not seen a time wise correction where in the markets would stay in a range for some time . After all big corrections markets need 4-8 weeks of range bound correction for stability to comeback. So its better to wait as expecting a quick pullback would be difficult and budget could be the next trigger. So its more about waiting for time and few sessions .
And as always be disciplined and dont expect superlative returns just because it was possible in previous times. Sensex has taken a big crack and would take a lot of time to heal so be ready with the resources and be patient too ..
I believe many of the readers took the caution and the importance of discipline and strategies given on January 9 just a day before the markets made the high . Had clearly stated dont stay on marging or over leverage. So with discipline lot of us saved quite a lot of possible fall in portfolio.
Even if there are investors who did exit margin positions and generated some cash could have seen a 20-30 % drop in portfolio ( but would have definitely saved themself from capital reosion which is the most important thing ) from Jan start levels but i believe the portfolios would have grown well in the run to 21k if they were disciplined.
So the strategy remains dont be leveraged , keep booking partial profits , keep stoplosses and buy in small quantities on dips and dont hurry ….and much more as discussed. There would be opportunities coming in the weeks to come as lots of businesses will be available at good prices but dont hurry … Wait and watch .