Sensex Technical View :
Sensex takes a dip from 14200 and has already reached 13500. The gap is placed at 13300 . The dip to 13200-13300 range could be used for buying for a bounce back. Lots of stocks gave good returns in the bounce back and after locking gains investors can again go with partial quantities in specific stocks around Sensex support levels.
Market Observations :
The current 15 % move up from the lows of 12500 surprised a lot of people ! and many must have missed it completely. Sesa goa , Rolta , RCAP bounced back 30 % from the lows which were recommended to clients. As i mention bear rallies can give much quicker returns then bull runs. Continue to be stock specific and be focussed on good value stock in declines whenever markets make a dip.
Huge move upto 125-130 $ in October contracts and still not able to cross 111 in November . A classical short squeeze was seen yesterday in the last day of expiry in Nymex and dint see any pullup in other exchanges of the world i believe. This clearly shows the amount of speculation going around in the commodities markets !!!. And currently as i check its quoting around 107 !!.
Technically the resistance remains at 108-112 zone and a dip is possible from those zones. On a higher side i would be surprised to see 118-120 to be crossed for some time.
Stocks to watchout for :
Rolta ... Has again declined after making a good 20 % move. Had a buy call at 240 for investment which got booked at 290-300 in the day itself. Investors can again look to add around 255-260 and 240-245 with a medium term view and stop of 230 tgt 300.
Syndicate Bank and VSNL are close to technical breakouts keep a watch on volumes or buy on dips for short term with 3-4 % stop.
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