Sensex Technical View :
As before the important levels remain 9300 and 10500 odd on the range in near term. So in this tight range it could be a wait , watch and then react scenario. On a sustained closing above 10500-10700 there could be a shot to 50 % level of 11650. Sustaining above the 38 % level of 9600 odd for some sessions would signify more strength, but a test of 9300/8900 cannot be ruled out.
Technically its a situation where one needs to look at market movements closer to the lower and upper range. If we see a sustained move above 10500 -10700 we can expect 11650 and to an outer extent. On the other side Sensex has seen 2 sessions with a low of around 9630 which is around 38 % retracement sustaining below that could test the 9300/8900 zone .
So next 3-4 sessions would give a better indication of what Sensex has in store for traders.
Possible Head and Shoulders :
There could be numerous possibilities with this pattern but till we dont see a breakout/confirmation its better to wait then take conclusions. Have got some queries on a possible inverted head n shoulders so a quick chart posted.
In the chart above have put up a few HNS patterns -not all are exact. In some cases we saw a good breakout on either side which gave a clear direction to markets. The chart is self-explanatory and made quickly so have not included tgts , levels etc just a graphical /text presentation.
Stocks to watchout for :
Some stocks which have seen good volumes at lower levels and can give a possible bounce back . Traders need to be quick with stops as some can give false moves also.
Deccan Chronicle…. needs to sustain above 48 for tgt 55-67.
Century Textiles …. above 215 can tgt 265.
NALCO …. above 173 can tgt 185-205.
A very good indication for a sharp short term stock trader would be the top levels made on 5 November or the day we hit 10945. In case markets do give a move above 10500-10700 , stocks which cross and sustain above recent tops can give a decent 5-15 % trading opportunity on upside with a small stop .
For example :
BHEL above 1470 , ONGC 810 etc etc … So put a rough calculation and make your trading list as this could be intra-day triggered trades.