Sensex Technical View :
In the last few weeks Sensex has not moved much apart from the intra-day volatility. Technically the scenario remains the same about a clear breakout above 9300-9500 happens on closing basis. The bias remains positive in short term and would give a higher probability to a pullback to 9900-10400 zone more compared to the possibility of 8500-8300.
But further trades would be based only on a confirmation of breakout or current trades would be with extreme short term say intra-day or 2-3 sessions.
Global technicals and observation :
refer to charts shown in the post below.
Dow Jones :
Inverted head and shoulders pattern suggests a good move and could tgt 9300-9400 in short term if able to sustain above 8800 for a few sessions.
Hang Seng :
A clean triangle breakout with a good surge. The index is very close to 15300 odd levels it reached in the pullback after Oct lows. It has moved frm 11800 to 14800 + in near term which is a sharp move. The tgts are around 15400-15900 and to an outer extent 17k also.
Showing mild bullish signs but if able to stay above 4250 for few days can then tgt 450–4700 in short term .
So all the global charts look ready or close to a breakout but we need to see confirmation in this week. So lets wait and watch whether we see a good move around the world and whether Sensex does take a cue from it .
Statistically Sensex has been an underperformer to many other indices seeing the moves in near term.
Stocks to watchout for :
Stocks to trade in momentum
RCAP above 476
ITC above 176
Hindalco above 53.5
RIL above 1190
SAIL above 72.5
Buy above the levels with a stop of 3-4 % and tgt of 8-12 % in short term.