Sensex surprises big time and has done our tgts of 12900/14500 (almost done tom ) which was supposed to be a 10-14 mths or earlier but not 2 months.
Technically the entire retracement levels of the last fall from 21200 to 7700 comes to 14500/16k corresponding to 50/61.8% fibonacci levels. So ideally one would expect a major top for short term be seen in this zone.Previous top of the last leg comes to around 15580.
Similar levels for Nifty comes to 4650 prev top and 4800 as 61.8% retracement. Taking into account these levels we would expect a maximum cap for the rally at 15.5k-16k and 4650/4800.
Investors should be highly cautious and book out of large caps and over run stocks at least to the extent of 50-60% when index starts moving above 14700Sensex /4500 Nifty or even earlier.
The next round of opportunity lies in the MID CAP AND SMALL CAP SEGMENT as the broader market has still not rallied enough or participated .
Many stocks discussed here have moved up considerably continue to be disciplined and book profits on 25% gains to reduce avg cost for long term holding.
Stocks to watchout for :
Investors can look to enter following stocks which have not participated in the rally by shifting from ove run stocks. Will look for short term picks after stability this week.
Aurion Pro ( lil risky )
Patel Int logistics /Kirloskar Oil
Agro Tech Foods.
Do your own research before selecting the stocks.Partial around 30-40% can be taken at current price and then add on dips.