Technical view by Nooresh

Boring … Boring … Be Patient !

Sensex Technical View :

Sensex moves up and makes a high of 9725 close to the resistance level of 9750 and dips a bit to close arnd 9650. The breakout from the range is on low volumes so will remain range bound with supports around 9450/9280 in near term which could be 2875/2845 zone which would be levels to watch for.

While writing this Dow Jones is down 300+ points so cues would be negative but need to watch the 9280/9450 support zone for traders. 

Stocks to watchout for :

Chamble, Reliance , RPL and petronet made small moves and closed flat whereas Lanco did give a small upmove. Continue to trade with lower volumes and small stocps to conserve capital and patience for a major move which may come in next couple of months. 

As the range has reduced the stops should be kept at 3-5% and tgts of 10-12% as of now. 

Market Observations and Thoughts :

Of late have seen many amateur and novice traders punting in the options market ( Nifty )  without any knowledge or calculation considering it to be a low risk trading method which it actually is not mathematically unless you have done the calculations right. 

What many traders tend to forget is the time decay in options as in a range bound market novice traders tend to hold out of money options in hope the prices may come back with Nifty following the direction but forget with time the option premium would decrease. ( for example u buy a 3200 call at Nifty at 3000 spot suppose 10 sessions later Nifty again pulls back to 3000 the call option may move down ! ) 

Will try to put some detailed links or posting on options in the weekend if possible. 

Best Regards,



Article by Nooresh Merani

Nooresh has written 2531 articles.

You can follow Nooresh Tech on Facebook and Twitter here.

{ 0 comments… add one }

Leave a Comment