Technical view by Nooresh

IIP Data, Interim Budget in coming sessions.

Sensex Technical View :

Supports hold up for the day with Sensex making a low of 9460 and Nifty 2877 which is what we were looking for yesterday but the pullback could not cross 9750 on upside so all in all an inconsequential day for the index. 

We did see a move out of 9450 range but have seen no follow up moves to give comforts to short term long trades making it tricky to take a positional view. This is similar to what happen after  9500 breakdown. In short after a breakout the range has just shifted to a  higher or lower level without any great direction so best thing would be to wait and take small day trades till we see follow up moves. 

Dow Jones  And Gold Technical View :

Dow Jones :

The index did try to pullback from the 7800 support zone but stopped at 8300 odd itself in the attempt. On the downside 7750 remains an important level to watch as shown in the chart. If the index moves below that level with volumes then it may well make  a new low also. 

Gold :

While writing this Gold is quoting at 940 + and is suggesting a breakout beyond the zone of 930. It seems to be headed towards 952/980 in near term. Made a quick move to 945 once it crossed 930. Would be a buy on dips with a stop of 915 tgt 950-980. 

Crude :

The pattern continues with current traded contracts going towards 33-35 by end of expiry and next month quoting at 40 +. So it seems the trade is to keep shorting crude on end of expiry !!! or no buy trades on last week of expiry. Over all sluggish positional moves. 

Stocks to watchout for :

RCOM stays arnd 170s , Chamble 42 ( good if crosses above 43 )  , Lanco 125 , RPL 87 . Traders can reduce positions or keep a stop of 3-4% frm cmp. 
With IIP data , interim budget etc would prefer to be on the light side of trades as volatility may increase on announcement. 

HIGH risk trades :

Short Akruti around 1000-1030 stop of 1060 for a tgt of 950-980. 
Buy Adlabs around 168-170 stop of 165 tgt 180. 

RCOM , Chamble and IDEA look good for short term but would be a buy if Sensex manages to cross 9750. 

Cement stocks could be surprise movers . India Cements , Ambuja and Ultra Tech look good on charts. 


Best Regards,


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Article by Nooresh Merani

Nooresh has written 2532 articles.

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