Sensex bounces back sharply from the momentum trendline which was around 10700 and is now in striking distance of the recent highs of 11370.
The flag range is almost 600 points which implies 2-3 sessions above 11350-11400 could lead to a similar move. Possible targets 11650/11900.
Lot many global indices are similarly shaped and some have broken above the March 2nd week high ( similar to Sensex 11370 ). A small breakout move in the week could be witnessed in many global indices. ( CHECK POST BELOW FOR GLOBAL INDICES CHARTS )
As explained below a breakout if happens in short term above 11370-11400 on sustaining basis would be very volatile and trick stops of traders also. Investors should look to book profits , re-shuffle their portfolio and reduce stocks which they are not truly convinced of and build a stronger portfolio.
The current move if one has to trade then should be nimble footed and strict as there might be many whipsaws in specific stocks also. Reduce volumes if not able to follow discipline.
Stocks to watchout for :
Larsen is about to breakout above 910 , KFA tricks with a pullback 38.5 stop if already taken, Mundra not yet moved above 420.
Max continue to remain bullish in the long run 155 zone resistance for now.
The stock has given a breakout above 245 zones today but did not sustain. If continues to stay above 234 may expect a move to 265 levels also.
Risky trading picks — Keep volumes low and strict stops
Voltas can give a small move if holds above 58. Tgts 66/72.
LnT stop of 884 can tgt 940-960 zones also.
ONGC stop 830 tgt 885-900. Weak below 830
I would urge readers to put in their comments/suggestions on the blog or mail to email@example.com …Investors who have asked me for starting new services also mail us the suggestions about what u want in the services.