Wait and Watch ….. Cash is also a trading position !
CLICK TO ENLARGE images. Reliance and HDFC Bank
Sensex Technical View :
Some points to note
--- > 11200-11400 200 dema region as well as channel top as shown in the chart.
----> Multiple tops around 11370 zone.
----> Recent bottoms of last few days around 10650-10720 which if broken could lead to follow up selling
--- > Fibonacci retracements come to 10100/9700 for 38/50% which are possible levels if it stays below 10700
So traders need to be cautious and after booking profits in stock specific now need to reduce volumes on long picks as well as keep strict stoplosses and be cautious with a wait and watch policy. Hedge with 3200 puts for longs. Cash is also a good trading position at uncertain times.
Stocks to watchout for :
Power grid hits stop and not able to cross 102, Spicejet also stop hit. HDFC bank chart posted above. Bharti can avoid as index not supporting
One of the major contributors in the current rally has retraced back 61% of the last fall and is facing resistance around 1800-1850 zone. Short term supports at 1660-1690 zone if broken then it may head to 1500-1550 levels. The momentum is fading and staying below the trendline indicates that only a move beyond 1800 would negate weak implications
Momentum stocks which can be taken for quick trades if 10650-10700 goes on index.
Reliance Capital below 498 may head to 460. Reliance Infra below 657 may head to 630. Keep stop of 2-3% on initiation of trade.
Some volume buzzers which can see momentum but take care
RETURNS OF 12% in trading calls for March 2009
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