Sensex Technical View :
Sensex made a good move today and is now close to 10800. Sustaining above 10800 or closing basis could tgt 11200 /11900. On the lower side the recent low remains the support. Technically one needs to watch the 10800-11200 levels which if crossed with volumes/momentum then 11900 comes into reckoning. On the upside there is a gap at 12480 which needs to be filled. Continue to wait and watch the levels and trade accordingly.
Stocks to watchout for :
Aban Offshore seems to be bottoming around and could see a bounce if crosses 1170 could tgt 1300 after which 1500.
JSW steel seems oversold and could see a bounce back if sustains the recent low of 240 .Above 280 could see 310-350 levels also.
KOTAK Mahindra Bank below 390 could see a drop to 320-350 quickly.... Traders can keep a watch .. Above 500 could be a different thing altogether.
IDFC has bounced back but if closes above 65 can target 75-80 . Although has already moved up 20 % but has scope after such a huge correction.
One of the most oversold sectors is Metals and Steel stocks ---
JSW Steel , Jindal Steel and Power , TISCO, Sterlite Inds could see a good 10-20 % bounce if markets are to bounce above 10800. Traders can keep a watch for quick trades.
Market Observations and Thoughts :
In the last update we had was if it goes below 815-820 it could see 780 levels and it has come close to that. Technically 920 + was a resistance similarly important supports are at 725-690 zone on downside. If breaks below 770 and stays could expect lower levels... Out of a sudden all the gold bulls who spoke of 1000-1100 seem to have ran away . But it seems the rally was more due to the hedge created or quick money running for gold as a currency or economic hedge but not coz of demand of GOLD... So now can it go the commodity ways like other metals ??? is the question ...
As said before no need to update as may not impact equities anymore... Technically 65-70 is a good support zone where it should stabilize and below which the next support is 50 which is a tooo far-fetched.
Dow Jones :
Dow Jones technically seems to be trying to find a base around 8k zone. Supports for long term on downside is 7300-7500 which should not broken watever comes otherwise it could have implications beyond a recession as supports are way way lower technically . Also the consolidation around 7800 bottom zone if lasts for some more weeks then the markets can get into a range of 8k-9800.