The upmove in Sensex is not ready to take a breather and continues to sprint. Although indices do look a little overbought but they can remain so for a long time till we dont see a strong reversal signal on the charts its better to watch the index and concentrate on specific stocks.
The high reached after Octobers is 10945, 200 dma and dema comes closer to 11200-11400. This seems to be a band of high resistance but a sustained closing above 10600 levels would ideally mean a range breakout which should then target 38/50% of the down move from 21k-8k and the bottom would be well in place for a long time to come.
We would look into this situation if Sensex starts going beyond 11k or takes a breather to 10k in a detailed manner.
Stocks to watchout for :
Idea,sesa and other speculative ones guj nre, balaji , fsl still look good. Ge shipping SCi may have some more steam to 220/90 levels.
Good buying/accumulation with volumes seen in the counter. Can be bought with a stop below 71 for a tgt of 84 in short term.
The stock may have hit the stop last time around but a sustained move above 720 should tgt 750/830 levels in short term. Stop would be 690 a lil deep as volatile stock.
Speculative built up seen in GTL infra /NIIT sharp traders can keep a watch.