Technical view by Nooresh

Testing the neckline ! 13300-14500 is the range as of now

Sensex Technical View :
Some sessions had shown a chart and video about the Head and Shoulders pattern at 14100 which was a decisive reason for us to exit at 14100-14000 and start buying at 13100. The second target of 12500 was almost achieved . If we see again the neckline comes to around 14200 odd zone which is yet another resistance above which we should see sustained closing in next few weeks to negate the pattern.

Also it was mentioned to keep a watch on Dollex charts and could see some positive indications and if we see technically all indicators gave a positive divergence which would generally lead to a strong pullback and was one of the reasons to start buying at 13100 :).

Gap Support placed at 13300 zone is a level to watch on dips. As suggested booking profits at 14200 was the idea and further on trailing stops be kept or look to re-enter on stock specific dips.

Market Observations and Thoughts :

Rumours are the best things to avoid or one should have a position before the supporting rumour. Just a few days back ICICI was going bankrupt and it moved up 100 bucks :) . Was surprised by a joke saying upper ckt on Monday :) ... There are lots of rumours but one should have better reasons to take a trade :) or investment.

Crude :
Crude as expected is giving a pullback much stronger then 110 and technically wont expect it to sustain above 120 zone after a few sessions as expiry squeeze seen and not able to gauge wat is the exact price !!!! . Again a dip to from this is possible and can get rangebound in coming days.

Gold :
After quite some time gold has again become highly volatile with varied expectations from the US bailout scene. Technically we saw a good pullback once from 890 and later from 918. It would be very difficult to cross the 930-950 range in any case so a good short chance can come around the zone of 930s.

Review :
Some of the investment bets advised to clients which gave quick returns and were gradually booked and trailed . Good returns of 10-25 % .

Reliance Inds - 1830 to 1980/2100 .
Reliance Capital - 1030 to 1180/1280
Rolta - 240 to 290.
Sesa Goa - 102 to 115/123 . Quick move :)
GTL infra - 33-34 to 38 .

Also holding on partially to IFCI, IDFC , GTl infra some others and waiting to add at lower levels.

Stocks to watchout for :

Brushman Inds and Bang overseas saw good intra-day pull up .

Investors can look to buy Sugar stocks on further dips as they have again corrected to good levels with a medium to long term view . Best bets - Shree Renuka Sugars , Balrampur Chini , Sakthi Sugars.

Best Regards,



Article by Nooresh Merani

Nooresh has written 2531 articles.

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