Technical view by Nooresh

Gaps !! Make it, Fill it goes on ….. Be stock specific

Sensex Technical view :
Another gap up move and continues to 14300 . In the last few weeks we have seen lot of gap ups and gap downs which are made and later filled up.

Sensex has gaps left at 14484-14608 while one of the gaps was filled today . The above gap is a level to watch. As we have seen in yesterdays post till Sensex sustains 13500 and doesnt break 15100 we can expect markets to stay in the narrow range and swing to different cues. Till we dont see a move out of this range traders will need to be cautious and dont go leveraged as it would be a small range in which markets could swing and would be better to take stock specific view then index view .

Stocks to watchout for :

Sugar stocks Sakthi , Simbhaoli ran up as expected and still look good for more . of the breakout stocks KRBL moved up above 145 and got locked in upper freeze at 152 !.

ACC is firming up on charts for a bounce . Buy above 600-604 for a tgt of 630-650 .

LUPIN is the only chart which is making bullish oves and a close above 760 is the level to watch in next few weeks and if does so the pattern suggests a 150-200 rs upmove.

Extreme short term picks for 2-5 sessions :

Indiabulls, MTNL could see another 5-10 % in near term . Nagarjuna Fert above 39.6 could tgt 45

Kolte Patil , KRBL are ideal picks for high risk day traders for intra freeze .

Some views :

We have seen CRR rates being hiked , inflation continues to sustain 11-12 % zone , Earnings projections are being downgraded etc etc and lot of data which continues to show a slowdown which was evident from the time of 17k on charts where in we were cautious/exit/book etc and the economical data seems a little late.

So what next from here , technically the expectation is the correction and bottoming out phase could continue till Sept or lil later and worst case Jan ( 8-13 mths theory ) . So accordingly the economic data could continue to worsen till Sept or lil later but markets generally tend to discount the things before economic data does !!! .

Although index will continue to remain under pressure or range bound there are loads of stocks , sectors which are still strong and some fallen much below fair values and seems attractive. Many of the stocks are available at an index level of 8000 ! or roundabouts and the ratios like p/e, eps , book value loook attractive in many of them . So investors need to do much more research as suddenly options have increased , coz many may seem attractive .

Bottomline is Stock markets are not about SENSEX or NIFTY but about the thousands of companies listed on NSE ,BSE and there are lots of opportunities available and as indices are in the process of bottoming out and lots of stocks may have already bottomed out while some others may still knock 52 week highs . Be focussed do appropriate homework and be disciplined and this market would reward !! Men are now being separated from boys/babies :) ....

If u like the stuff put up on the blog pass it around and for suggestions , comments feel free to post it or mail to .


To subscribe to exclusive newsletter and messenger /sms services check for details

Best Regards,

Nooresh 09819225396

Article by Nooresh Merani

Nooresh has written 2532 articles.

You can follow Nooresh Tech on Facebook and Twitter here.

{ 0 comments… add one }

Leave a Comment