Technical view by Nooresh

Yet Again Gap made and filled …. Need to spot moves early !

Sensex Technical View :
Gaps are made to be filled seems the line markets are following these days and that too very quickly... Sensex made a huge gap up today and by the end of the day it fizzled out.. Technically

as shown in the chart and discussed before 15400-15800 zone is a very tough resistance band and at 15100 it was a stated if the dip doesnt go below 13500 markets could take a shot at 15800.

Currently the trendline support is roughly around 14600-14700 which is a level to watch for short term players. On the upside traders can be very stock specific or book around 15400-15800 zone and later wait for a close above 16000 to take fresh positions.

Strategy :

Earlier all through the correction below 14200 the view was to accumulate good quality stocks for long term . Lot of our favourite stocks have gone much beyond targets and have been overperformers!! SBI , RCAP , BOI ,LIC , tata Chemicals etc etc have actually bounced 30-50 % from the lows . Lot of trading calls have given good returns whenever the markets have given a good upswing. Now as was suggested to book half or more of holdings at 15000-15100 earlier would now suggest to book completely the stock bought during 12500-14500 at 15400-15800 index and then take a fresh look again if we sustain above 16000 or wait for dips.

Traders can continue to be stock specific and trade with strict stoplosses and be cautious

Review :

Yesterday as was put up that we had lot many stock calls which were open for short term . Today partial/half booking was advised at higher levels in the morning and later some of them hit trailing stoplosses so the no of stocks in the trading portfolio reduced to a large extent. Yet again would be looking for fresh positions ! ....

Bhel , crompton , bharat forge gave a good move up frm the charts put up . Edelweiss went till 670 before cracking .. Reliance still not crossing 2350 convincingly ...SUGARS ARE ROCKING and we continue to remain bullish over medium term but booking to some extent was advised.

Triveni Engg given at 95 overshooted our tgt of 112, Renuka partial booking at 140 advised. Andhra sugars, Sakthi sugars gave good 20-30 % gains.

Stocks to watcchout for :

HMT , ITI are seeing lot of speculative buying . Close above 81 and 43 would lead to another 10-15% spurt.

Reliance Inds has a crucial resistance at 2350 . A close above would take it to 2500 . 2200 on a lower sidde is a level to watch .

Hotel Leela seemss to have bottomed if it sustains above 35 could see a bounce to 40-45 levels but a high risk pick as stop is placed at 31.

Sun Pharma advanced .... good buying seen in the counter . If it sustains above 85 one can go long for short to medium term .

For old newsletters check

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

Best Regards,

Nooresh 09819225396

Article by Nooresh Merani

Nooresh has written 2531 articles.

You can follow Nooresh Tech on Facebook and Twitter here.

{ 0 comments… add one }

Leave a Comment