Technical view by Nooresh

Fed cuts…..

0.75 bps cut ....

Sensex Technical View :
In the last update it was clearly mentioned we are opening up to the zone of 14200-14700 roughly and investors with long term view should buy around those levels and can allso buy token qty at 15100. Sensex has made a low close to 14700 and diips below it or a good reversal from here on should be used for buying for a good short to medium term gain. Bounce Back should face resistancce at 15600 and 16200 on higher side.

Another thing to note is we may see a gap up opening due to Dow jones being up 400 points so traders need to be stock specific from here on and be strict with stoplosses. We could continue to see such volatility for the next two weeks and the next turnaround zone we could note is 1st week of April which is 13 weeks from the low and 89th day area .. As we had previously seen a bounce back of 1000 + points from 15400 but it fizzled out so the correction and consolidation move should continue till first two weeks of April after which there would be lesser volatility and clearer direction as it also fills up the view that mkts take 8-12 weeks to settle down after a big crack.

The blog was not updated for a couple of days as was out of town for a break and with the markets nearing the 14500 areas which we had been waiting for with cash and investors should now start nibbling into good quality stocks in next couple of weeks for a pullback to higher levels.

Over corrected stocks like DLF , HDIL , Punj lloyd , Ind Bull real look good for investment returns of 20-25 % which can be very quick also . Can pick the stock u like and find safe.
The banking segment seems to have over corrected and bottom fishers can get a good 10-15 % pullback in stocks like BOI , BOB , Union Bank , IDBI
Lots of mid caps look interesting in terms of the corrections they have seen and fundamentally none of them have seen major funda changes so valuations have become attractive . Do ur own research and go slow in buying good qualtity mid caps as i dont expect a very quick bounce back and investors will get enough time to buy ... Bartronics on dips below 160 , GTL infra at 40-43 , IDFC at 120-135 and many others like IDBI , RPL with a stop of 140 , ,......Do pick ur choices...

Best Regards,



Article by Nooresh Merani

Nooresh has written 2531 articles.

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