Sensex after breaking the channel has come down to test the 9000-9200 band by making a low of around 9162 and giving a bounce. On the upside 9800-10k remains a level to watch. Only a move beyond 10400 on upside would be a positive breakout.
On the downside sustained closing below 8900 zone would endanger 8300 as well as recent lows.
The strategy remains to trade for short term till with the corresponding levels as a guide for stock specific trades. Investors should wait for more clarity around Feb-March or wait for dips before taking a long term call as technically timewise pressure remains till 13 odd months ( Feb-Mar ).
Stocks to watchout for :
Colgate looks good for a short term move if able to sustain 415. Could target 430-445 zones also.
Ranbaxy has finally given a breakout from a tight range but the volumes are low. Can be bought with smaller exposures on dips to 225-228 stop of 216 tgt 255.
Satyam suggested on dips from 140 -110 made a low of arnd 115 and has reversed back sharply to 150 +. Those who have made a pyramid position arnd 140 to 120 should reduce 30-50 % at 150 + to book profits at 20 % gains and hold rest for medium term.
Reliance Inds has a good support around 1180-1220 . ONGC around 615. Quite some large cap stocks have touched or come closer to near term supports. Need to wait for a few sessions to get more clarity whether its a bounce or a resume of earlier pullback.
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