Sensex Technical view :
In all our previous posts in couple of weeks back we had maintained an exit/book profits and generate cash at 17500 + levels only for the risk of this possibility of channel breakdown and hence preferred to reduce at channel top. Now the channel got violated at 16800 and all trading stops got hit with small losses or small profits in trailing stops.
Technically if 16200 holds up we could get into a downward channel and see the downward gap at 16630 being filled or lil more bounce back also . Only above 17200 can we see a trend reversal.
Strategy would be to watch out for bounce to 16600-16800 for shorting with 17200 stop or wait to see good momentum on downside below 16200 … Lot of stocks have gone below short term and medium term supports and in such a case should see a quick fall which is yet not seen so shorting becomes difficult with gaps so will prefer to wait for momentum or panic to sell otherwise just stay on the sidelines…
Long term investors can start making a list of choices for creating a portfolio in coming months . Do adequate home work and research as choppy volatile markets will see good value buys possible . Technically if there are any uncertainties on politics, fundamentals , commodities , inflation etc etc should get digested in next 1-2 months or more as channel broken in short term and if a correction has to come it can come now in next 2-4 weeks or we may start getting into a sideways consolidation to strengthen the end of the year…
This is just a possible view but its better to be prepared to invest much before u expect opportunities so we can do adequate homework and be convinced ! ./
Stocks to watchout for :
Saw lot of stops being hit on friday and as usual exitted on small losses and small profits in trading picks and now waiting for investment picks. Only Spice tele was advised above 46-46.5 for a tgt of 54 . Done 49 odd already …. Hope to see it touch 50-54 tom.
Investment pick for long term :
Accumulate on every dip till 300 -340 for next 3-4 weeks only with a view of 6mths to 1 yr holding . Fundamentally a good stock with lots of value and diff businesses ( natural resources , semiconductors , cons dur , etc ) but concerns on mgmt quality.
Investors can do their own research and take time before getting into it as not a momentum call now . Will try to update more lil tired today have few more stocks in mind too 🙂 ..
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