Technical view by Nooresh

Sensex bounces and trips….

Sensex Technical View :
Sensex saw a good bounce from the lows and recovered more then 1000 + points but quite a bit of the gains were shaved of today. The current pullback will continue to face resistance at higher levels and investors should wait for dips and cracks to buy and dont expect obscene returns. Sensex near term supports at 15700 zone. Strategy continues to remain same trade for short term and book profits also on 15-20% gains as we did in this pullback. Technically it is difficult for the indices to get into a runaway rally or deeper crack from here so let the dust settle and use swings till then.

Yesterday it was clearly stated to book profits on 15-25% gains which many stocks did give and as part of our disciplined approach advised to book profits at least partially.
Investors were alerted to not buy on the gap up move coz markets have still not settled well so they will get their opportunities. Traders got a good opportunity in last 2-3 days and should continue to be alert and keep strict stops in further trades as volatility will continue to be very high.

Some messages sent :
11-Mar-2008 14:40:56
High risk buy CAIRN at 230-231 stop of 227 tgt 240-245. short term.

11-Mar-2008 15:03:24
Reliance tgt of 2420-2430 done book fully .Nifty 4900 call can book above 180. Nifty futures can look to book fully at 4970 + or keep nominal .SBI can trail. Cairn book part at 238-240. Ispat at 39-40 half

12-Mar-2008 13:25:40
CAIRN book half of initial buying at 243-245 . Keep trailing stop at 237 next tgt 253.

12-Mar-2008 15:03:22
Cairn near tgt of 253 book fully between 250-253 or keep trailing 245 .

Summary :
Nifty futures booked fully on opening at 4970-4990 a good 300 ++ points from 4650.
Nifty 4900 call 80-85 to 180 + booked fully ... More then double
Reliance SBI GTL infra Videocon Ispat gave 7-15% gains
CAIRN quick move from 231 to 253 .
All in all quick safe trading and made it a point to book at higher zones in the morning where in all others were trying to buy throughout the day for bounce back .... We were disciplined as we took an early entry on Monday :) at the lowest zones ... Again we will be waiting to get some good risk reward trades .

Best Regards,



Article by Nooresh Merani

Nooresh has written 2532 articles.

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