Putting up the same chart as before . As we see the down channel support is placed at 13500 which is an important level. Till the level holds we could see a bounce back to higher levels. So till it doesnt go below that it would be ideal to wait and watch rather then going for shorts.
As discussed in our detailed presentation that the current corrective phase is for the whole 5 year rally and it could last 5-8-13 mths before we see a major turnaround. Presuming that we could either see the bottom be made in this zones the major supports are at 13500-13800 zone and 12500-12800 zone where could see a stable bottom being formed in next 3 mths ideally. So technically its a time wise correction and investors should good opportunities for quite some time so there is no need to hurry go slow and pick your choices with good home work rather then buying/averaging stocks just because they have corrected and make same mistakes as before .
Investors can continue to go staggered in stocks discussed and till now as mentioned 30 % at 14700-15300 and further 20-30 % at 13500-14100 can now wait with the rest if we get a range of around 12500 and keep in mind its with a long term view and we are looking at stocks which dont fall badly … And all stocks may not bottom out with the index so difficult to pick bottoms so best way is to go staggered .
Stocks to watchout for :
Bharti Airtel has a crucial support around 700 . Traders can keep a watch at that level can go long at 710-715 with 695 stop for a trading bounce or wait for it to crack below 695 levels to go for a quick short trade.
Glaxo is worth a watch in pharma space if we see increasing volumes … Suzlon below 220 and Tata Power below 1000 would give a breakdown . For detailed technical analysis presentations download from the links .