Sensex Technical View :
Sensex as expected is continuing the bounce from 14700 support zones and has come up till 15500 which was the 1st tgt resistance. Ideally the current upmove should continue to 50 % and 61% retracement levels which are placed at 16100 and 16400 . But traders should continue to remain cautious as its still a pullback and not a rally . Sensex may have made two same bottoms at 14700 odd but technically we need to see lot more sessions to confirm a double bottom . Strategy for traders should be to trade for short term and keep trailing stop. Investors who as advised had put in cash at 14700-15300 should look to book partial profits at the resistance levels.
Few days back had written a view about June 10 th being a possible turnaround date .
June 10 th was 55 th day from 14677 bottom and in 21st week from Jan. On a fibonacci time basis such dates tend to see a change of trend or a bottom formation . Same was the basis for the analysis of a move after April 2nd week where in we saw 2000 points move to 17700. So on a short term basis we can assume 14700 is an important bottom and on a fibonacci basis bounce back should at least last 8-13 days in the first run.
Stocks to watchout for :
Had posted 4 charts in previous week for investment.
IDFC from 11 5 -118 to 137 ... a good 15 % + move
Bank of Baroda 215-220 to 240 + .. a good 10 % bounce
Bombay Dyeing does 760 another 10-15 %bouncer
ONGC makes a low of 798 near to level of 800 suggested and bounces to 870 .
Mold tek does 84 , Bilt at 37 stable , NIIT ltd breaks out and hits stop unusual move , Reliance capital doesnt break 1165.
The bottom bounces possible stocks continue to look good . Elecon Engg jumps 10 % rightaway, IOL net com 5 % . Ansal Infra and TRF look good too...TRF is an excellent bet for long term investment at current levels ...
Thermax can also be a bottom fishing candidate with 400 stop tgt 480
Trading calls :
Buy Rolta above 312 stop of 306 tgt 325 .
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