Sensex Technical View :
The concern which was looming for a long time was whether the indices are able to give a breakdown below the slow channels . Earlier few weeks back we made it a a point to generate cash/book profits/exit in investments of lower levels at 17500+ . After that it was very clear to trade for extreme short term lower volumes and strict stops. 16800 broken meant exitting positions and waiting yet again . We saw small pullbacks from supports of 16200 which were used for stock specific upmoves. For last few days we have been checking the down channel and if it breaks 16100 -16200 the strategy was to exit. So lot of stocks hit stoplosses today and were exitted and now loooking towards short positions if we get chances.
Most important support zone is around 15300 and a minor support at 15800. Below 15300 supports are at 147000 and 13800-14200 zone. Possibilities of reversals etc will crop up in next few days…. As i always say SUPPORTS DONT IMPLY BUYING ….. Will wait for reversals frm support to buy other wise watch …
One thing everybody asks me is DOES IT LOOK WEAK /VERY WEAK ? Sensex is still sustaining ? Can we buy for investment . Strictly the answer has been trade for short term and all the calls generated are trading calls and not heavy investment ( evident frm some of my chat answers too ) ..
The reason is the following of Sensex and Nifty ticks which may be sluggish but have we noticed heavies /blue chips SBI , ABB , BHEL , NTPC, Unitech , DLF , ONGC ( not including midcaps ) are trading close to or 10-20 % below JAN -march lows … so the real picture is quite a lot of the good ones have already turned weak and will be nearing bottomouts.
This precisely is the reason Investors have been asked to stay on cash and generate as much of it as we may get better opportunities in days /weeks ahead even if we see a unusual reversal these gr8 stocks will still be near JAn lows 🙂 ….. So be alert do ur homework and cash is good thing to keep as u have ur wish and choice to bargain for !!!!!
Lots of the stocks discussed below are fundamentally excellent and available cheap can get more cheaper also and as always my technical bias still doesnt allow me to buy them as charts have still not reversed . We would prefer buying same stocks at 15% above the lows in reversals and confirmations. Right now only a trading view is given on the same doesnt imply fundas have changed…
Stocks to watchout for :
Guj alkali tried to breakout but with indices cracking would click our 188-189 stop. Many other stocks clicked very near stops and exitted as part of discipline …
Punj lloyd and Bank of Baroda charts put up in below posts ,
Educomp , DLF have broken supports and are headed to 3650-3500 , 554 -530 zones possibly . Traders can short on rise with stops of 3950 and 581.
Neyvyeli Lignite below 130 and APtech could see 5-10 % lower levels in selling pressure .
ICICI 720 , Bank of Baroda 250 , Axis Bank 730 are crucial levels to watchout for support. ( earlier had mentioned ONGC below 980 , SBI 1580, BHEL 1680 , ICICI 860, DLF 580 , Unitech 275-280 etc etc and such crucial levels broken have seen these stocks slide slowly so investors can reduce when u see such supports being broken )
TECHNICAL ANALYSIS SESSION :
The technical analysis session we conduct is for people who are interested in understanding the process of analyzing technicals in a simple , quick and efficient manner and would like to get independent in analyzing and deciding for themselves throughout in the future.
MUMBAI JUNE 3rd weekend tentatively ..
Interested people can call me at 919819225396 after market hours for queries and confirmations or mail to firstname.lastname@example.org